Canada Passes Law Requiring Google and Meta to Compensate Media Outlets for News

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In a significant development, Canada’s Senate has approved a bill mandating that Google and Meta (formerly known as Facebook) compensate media organizations for sharing or repurposing their news content on their platforms. This legislation, which is expected to become law, emerged amidst a contentious standoff between Prime Minister Justin Trudeau’s administration and the tech giants of Silicon Valley.

The Canadian government asserts that this law promotes fair competition between online advertising behemoths and the beleaguered news industry. Canadian Heritage Minister Pablo Rodriguez has vowed to resist the “threats” issued by Facebook and Google to remove journalistic content from their platforms.

Meta confirmed its intention to comply with the bill by discontinuing news availability on Facebook and Instagram for Canadian users, as it had previously indicated. While Meta did not disclose a specific timeline for this transition, it announced that local news would be removed from its site before the Online News Act takes effect. The bill is set to be enacted six months after receiving royal assent.

Under this legislation, both Google and Meta will be required to establish agreements with news publishers, compensating them for the news content displayed on their platforms if it contributes to the tech giants’ revenue generation.

This bill has received accolades from legacy media outlets and broadcasters. It is expected to bolster equity in the digital news marketplace and provide much-needed financial support to shrinking newsrooms. Tech giants such as Meta and Google have faced criticism in the past for disrupting and dominating the advertising industry, overshadowing smaller, traditional players.

Meta, headquartered in Menlo Park, California, has previously taken similar actions. In 2021, the company briefly blocked news content in Australia after the country passed legislation compelling tech firms to pay publishers for utilizing their news stories. However, Meta subsequently struck agreements with Australian publishers to resolve the issue.

Laura Scaffidi, a spokesperson for Minister Rodriguez, confirmed that the minister was scheduled to meet with Google on Thursday afternoon. Google had previously hinted at the possibility of removing news links from its popular search engine but did not provide any comment regarding the matter.

Both Meta and Google have conducted tests in Canada to gauge the impact of blocking news content. Meta is currently conducting a trial that restricts news access for up to five percent of its Canadian users, while Google conducted a similar test earlier this year.

The Online News Act mandates that these tech giants reach agreements with news publishers to remunerate them for the news content appearing on their platforms, as it contributes to their revenue generation.

“Tech giants will not immediately have obligations under the act after Bill C-18 passes. As part of this process, all details will be publicly disclosed before any tech giant is designated under the act,” stated Scaffidi.

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More about news compensation

• Canada’s Senate passes bill requiring Google and Meta to pay media outlets for news
• Canadian Heritage Minister’s statement on threats from Facebook and Google
• Meta confirms compliance with the bill and plans to end news availability in Canada
• Overview of the Online News Act in Canada
• Concerns over tech giants disrupting the advertising industry
• Previous actions by Meta in response to news legislation in Australia