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Sam Bennett

Sam Bennett

6 Jul 2023

3 DK READ

38 Read.

Canada’s Standoff with Tech Giants: A New Chapter in Online News Act

In a bold move, Canada’s Heritage Minister, Pablo Rodriguez, announced that the federal government has halted all its advertising on Facebook and Instagram. This decision comes amidst a heated dispute over the Online News Act with tech giants Google and Meta.

Rodriguez expressed his disappointment with Facebook’s decision to block news, calling it “unreasonable” and “irresponsible”. This has led to the government’s decision to suspend advertising on Facebook and Instagram.

The Online News Act, also known as C-18, became law on June 22. This law requires companies like Google and Meta to pay news organizations each time a user accesses a web story through a link on their platforms.

Online News Act

The Online News Act aims to support news outlets that have suffered financially as advertising has largely shifted to digital platforms. The bill has been pitched as a way to keep news outlets solvent after advertising moved en masse to digital platforms. Virtually wiping out a major revenue stream for journalism.

While Google has shown willingness to find a solution, Meta has been less cooperative. Meta’s decision to block news content in Canada has been met with disappointment and criticism. On the other hand, Google’s potential to follow suit has raised concerns.

Rodriguez stated that he is still having conversations with Google and is confident that a deal can be struck. However, Meta has taken a different approach and is not currently in talks with the government.

The Online News Act as a Tool for Democracy

Supporters of the Online News Act argue that it is a necessary tool for democracy. They believe that tech giants should view the Act as an opportunity to demonstrate their commitment to democracy by supporting a free, objective press and combating misinformation.

Bloc MP Martin Champoux emphasized that companies doing business in Canada must respect Canadian values and comply with Canadian laws. He further stated that C-18 is a necessary tool to ensure this.

The Act could potentially bring financial benefits to news organizations. For instance, the CBC could see a financial benefit under C-18. Which requires the CBC to provide an annual report on any compensation for news it receives from digital operators.

Online News Act

This could provide a much-needed financial boost to news organizations that have been struggling in the digital age.

The future of the Online News Act remains uncertain. While some parties are committed to its implementation, others, like the Conservatives, have voiced their opposition, labeling it as a censorship law.

Conservative Heritage critic Rachael Thomas issued a statement calling C-18 a censorship law that limits what Canadians can see online.

As the situation unfolds, the impact of the Act on the digital landscape and the future of news consumption in Canada will become clearer. The Act represents a significant shift in the relationship between tech giants and news organizations. And its long-term effects are yet to be seen.

Canada’s Standoff with Tech Giants: A New Chapter in Online News Act