Canada urges Meta compliance as Online News Act enforcement nears
The law mandates tech giants with 20 million monthly users and annual revenues over C$1 billion to compensate Canadian news publishers.
Prime Minister Trudeau is determined to push Meta to comply with the upcoming enforcement of the Online News Act, effective December 19. The legislation mandates tech giants, boasting 20 million monthly users and annual revenues over C$1 billion, to compensate Canadian news publishers.
While Google has committed to an annual payment of C$100 million, Meta has blocked news sharing on Facebook and Instagram, triggering government insistence on adherence. The law aims to tackle declining media industry revenue caused by tech companies’ dominance in online advertising. Meta, standing firm, asserts that news outlets benefit from its free services.
The Canadian Radio-television and Telecommunications Commission (CRTC) will closely monitor Meta’s compliance, and News Media Canada’s CEO urges Meta to align with Google in following the regulatory framework.
Why does it matter?
Meta’s decision to block news in Canada mirrors events in Australia, where Facebook took a similar step in 2021. This action led to legislative changes and negotiations with tech companies. Experts suggest that Meta is resistant to regulation not for financial reasons but due to concerns about setting a precedent for regulation in other jurisdictions, underscoring a broader global trend. Despite the ban’s limited impact on Facebook usage in Canada, officials are encouraging Meta to participate in negotiations, aligning with Google’s example.
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