Meta Platforms Inc (META.O) announced that all Canadian consumers would lose access to news on Facebook and Instagram if parliament-approved legislation required internet firms to pay news publishers.
The Online News Act, passed by the Senate’s upper chamber on Thursday, would become law pending royal assent from the governor-general.
After objections from Canada’s media industry, the measure was introduced to prevent internet giants from taking over online advertising.
“Today, we are confirming that news availability will be ended on Facebook and Instagram for all users in Canada prior to the Online News Act taking effect,” Meta stated.
Facebook had signaled this plan for weeks, arguing journalism has no commercial value, and its users don’t use the network for news.
Like Australia’s pioneering 2021 law, the measure requires platforms like Facebook and Alphabet (GOOGL.O), and Google to strike commercial partnerships and compensate news publishers for their material.
U.S. tech firms say the measures are unsustainable. Google said Canada’s regulation is broader than those in Australia and Europe since it prices news story links in search results and applies to non-news outlets.
The search engine giant suggested changing the bill to base payment on news content rather than links and limiting eligibility to news-producing enterprises that follow journalistic standards.
On Thursday, a Google representative called the measure “unworkable” and said the business needed to work with the government “on a path forward.”
Canada’s federal government has resisted changes. Justin Trudeau accused Meta and Google of “bullying tactics” earlier this month.
Google and Facebook threatened to cut services in Australia if similar laws were passed. After legislative modifications, both made arrangements with Australian media businesses.
On Thursday, Heritage Minister Pablo Rodriguez, who presented the bill last year, said the government “will engage in a regulatory and implementation process” after the law takes effect.
“If the government can’t stand up for Canadians against tech giants, who will?” Rodriguez stated.
A government official said the heritage ministry met with Facebook and Google this week and looks forward to more talks.
After the Senate passed the measure, News Media Alliance president Danielle Coffey stated the Canadian Parliament “should be applauded for standing up to Big Tech.”
“We are encouraged by the increasing recognition of the need for legal action to ensure just compensation, both in Canada and abroad, and hope to see the United States follow suit,” Coffey added.
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