Topline
The Canadian government announced Wednesday it will stop advertising on Facebook and Instagram, two weeks after Meta—which owns both platforms—said it will no longer link to Canadian news sites in response to a new law requiring platforms to pay publishers.
The Canadian government said it would halt its advertising on Facebook and Meta.
Key Facts
Pablo Rodriguez, minister of Canadian heritage, said Wednesday the Canadian government will not “continue paying advertising dollars to Meta” as the company refuses to “pay their fair share to Canadian news organizations.”
Rodriguez estimated the Canadian government spends about $7.5 million annually for advertising on both platforms.
Canadian media companies Quebecor and Cogeco also announced they both will pull their ads from Facebook and Instagram, according to Reuters.
Rodriguez noted the Canadian government does not plan to pull its advertising from Google, which also announced it will stop linking to Canadian news sites on any of its products, because Google “has been open to finding a solution.”
Meta did not immediately respond to an inquiry from Forbes.
Crucial Quote
“The reality is the web giants need to respect Canadian law,” Canadian parliament member Peter Julian said, adding both Google and Meta “need to respect Canadian democracy.”
Key Background
The Online News Act—approved by the Canadian government late last month—requires internet platforms to bargain with news publishers for licensing partnerships. The Canadian law follows similar legislation passed in Australia in 2021, which resulted in both Meta and Google announcing they will block news links from Australian outlets. Meta and Google subsequently reached an agreement with the Australian government and some Australian publishers, respectively. The Canadian law’s goal was to “enhance fairness” for Canadian news while helping local publications become more financially stable, after several outlets faced an economic downturn from declining print and digital revenue, according to government summaries. Google executive Kent Walker condemned the Canadian law, suggesting it was “the wrong approach to supporting journalism in Canada.”
Tangent
Sen. Amy Klobuchar (D-Minn.) said Monday the Canadian government should continue resisting online platforms that refuse to negotiate with publishers, according to The Globe and Mail. Klobuchar introduced a similar bill for the U.S. earlier this year, which would require online platforms to negotiate licensing agreements with U.S.-based publishers. Another bill was introduced and approved by California’s state assembly earlier this month. Ariel Pollock, a spokesperson for the U.S. Embassy in Ottawa, told The Globe that U.S. officials are “continuing to watch developments” over the implementation of the Canadian law, suggesting the Canadian government should “consider U.S. stakeholder input.”
Further Reading
Google Removing All Canadian News Sites From Searches After Law Requires Payments For Outlets (Forbes)
Meta Will Block All News Stories On Facebook And Instagram In Canada After New Law Demands Payment to Publishers (Forbes)
U.S. Senator Urges Canada To Resist Pressure From Meta, Google Over Bill C-18 (Globe And Mail)
Source: https://www.forbes.com/sites/tylerroush/2023/07/05/canada-meta-fight-escalates-canadian-government-halting-ads-on-facebook-and-instagram-after-meta-removes-news-links/