OTTAWA, June 22. As soon as a law forcing internet firms to pay news publishers takes effect, Meta Platforms Inc (META.O) said on Thursday that it will stop allowing users in Canada access to news on Facebook and Instagram.
According to a statement made on Thursday by Meta Platforms Inc (META.O), it will stop letting Canadian consumers access news on Facebook and Instagram as soon as a law requiring internet companies to pay news publishers goes into force.
The measure was put up in response to objections made by the Canadian media sector, which seeks more stringent regulation of digital firms to stop them from driving news organisations out of the online advertising market.
In a statement, Meta said: "Today, we are confirming that news access will terminate on Facebook and Instagram for all users in Canada before the Online News Act takes effect.
"Today, we are confirming that news access will end on Facebook and Instagram for all users in Canada before the Online News Act takes effect," said Meta in a statement.
Similar to a ground-breaking law approved in Australia in 2021, the act lays out regulations to compel platforms like Facebook and Alphabet's (GOOGL.O) Google to establish commercial arrangements and pay news publishers for their material.
The plans, according to American technology corporations, are not viable for their industries. According to Google, Canada's law is more expansive than those in Australia and Europe because it places a cost on links to news stories that are displayed in search results and because it can apply to media entities that do not create news.
The internet search juggernaut suggested that the bill be changed to stipulate that only companies who produce news and uphold journalistic standards are eligible and to make the showing of news content, rather than links, the foundation for funding.
According to a Google spokeswoman, the bill is still "unworkable" and the firm is actively working to cooperate with the government "on a path forward."
The federal government of Canada has thus far opposed requests for modifications. Prime Minister Justin Trudeau claimed earlier this month that Meta and Google were employing "bullying tactics" in their opposition to the law.
When identical regulations were enacted into law in Australia, Google and Facebook also threatened to reduce their services there. After the law was changed, both eventually reached agreements with Australian media businesses.
The government "will engage in a regulatory and implementation process" after the law is put into effect, according to Pablo Rodriguez, the heritage minister who proposed the bill last year.
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Who will defend Canadians against tech giants if the government can't?" According to Rodriguez's statement.
According to a government official, the heritage ministry met with Facebook and Google this week and is eager to continue the conversation.
After the bill's passage in the Senate, Danielle Coffey, president of the News Media Alliance international business association, said that the Canadian Parliament "should be commended for standing up to Big Tech."
Coffey added, "We expect to see the United States follow suit. We are heartened by the rising understanding of the necessity for legal action to provide just compensation, both in Canada and abroad.