Amid an ongoing disagreement over a new law, Canadian government has decided to stop purchasing ads on Instagram and Facebook, Pablo Rodriguez heritage minister announced.
The online news Act, or Bill C – 18, was enforced which states that Tech companies like Alphabet owner of Google to pay online news publishers.
In retaliation both Meta and Alphabet would restrict Canadian news access on their platform. However, Canada standing firm to ensure that if internet giants and social media platforms, want to utilize media, they have to confirm that they pay their fair share of it, Justin Trudeau prime minister informed in Monteregie, Quebec. The rules are being finalized by the government that would involve the platforms to share a portion of the advertising revenue, by the law applied at the end of the year.
Nevertheless, Rodriguez informed reporters, the government will formulate a pathway to resolve the dispute and open for discussions with the platforms.
Rodrigues informed, almost 10 billion Canadian dollar ($7.5 bn), 80% of all advertisement revenue went to Facebook and Google, the two platforms are required by the Liberal government to contribute to native journalism. the suspension of government ads will cost Instagram and Facebook roughly 10 million Canadian dollars ($7.5m) each year, he informed.
Facebook, has clearly indicated that they did not want to compensate the media and refuse to discuss. Rodriguez informed with the support of a few Canadian opposition parties, supporting the legislation.
Meta previously informed that there is no economic value in news and sharing reports on Facebook benefits news organizations.
Meta spokesman said, regrettably the regulatory process is not prepared to alter the essential features of the legislation which is a constant problem. He added that plans are in motion by the company to terminate news availability in Canada.
However, Rodriguez declared optimistic in reaching a compromise with Google, saying what Google is requiring at this moment, can be archived. Although Google had proposed amendments to the act that was rejected.
The outcome of the dispute with internet giants, can set a stepping stone for other governments trying to control internet companies. The companies may face a similar fate in the United States if they fail to secure exemptions or amend the rules in Canada.
Elizabeth Warren, Democratic US Senator expressed support for Canada, saying that leaders are true to stand firm against these tactics from big Tech companies.
