Facebook, Instagram Threaten to Pull the Plug on News in Canada

Meta has threatened to block news links to Canada from its social networks over Canada’s “Online News Act,” which would require internet companies to pay publishers for their content. The statement follows similar ultimatums from Google over the bill, C-18. If passed, Google and Facebook combined would wind up paying around CA$329.2 million which, according to Paul Fletcher, Australia’s communications minister, will make them “pay their fair share.” Meta has previously released a statement arguing the bill “misrepresents” the relationship between the tech companies and news publishers. Canadian Heritage Minister Pablo Rodriguez describes the legislation as necessary to help a media industry devastated by social media.

Modeled after similar Australian legislation, C-18 would require Meta and other internet companies to pay news publishers when they reproduce their content. Companies that don’t pay publishers for their links could open themselves up to binding arbitration. Facebook followed through on its threat to block news links in Australia in 2021. Google, the other largest tech firm implicated by the legislation, has repeatedly raised concerns over the bill’s scope and even ran “tests” last month temporarily limiting news results to around 4% of randomly selected users in Canada. Google downplayed those blockages publicly.

Meta has some previous experience playing legislative games of chicken. Two years ago, Meta briefly pulled the plug on news sharing in Australia in response to legislation similar to Canada’s. That shutdown cut off news access for an estimated 17 million Australian users and allegedly would up impacted sites of essential services like hospitals and fire services caught in the crossfire. Australian Treasurer Josh Frydenberg accused the company of “endangered public safety” by cutting off news access during the height of the Covid-19 pandemic. Meta eventually eased off of its news block and agreed to a watered-down version of the Australian bill.

With its recent statements, Meta is drawing a clear picture of how it’s willing to fight Canadian law. Google, similarly, appears prepared to go to the mat with regulators if they don’t get their way. The only real question now is how committed Canadian lawmakers are to push through C-18 as written. A combined news block out from Meta and Google, even if only short-lived, could send a shockwave throughout the country. The firms have plenty of incentive to dig in as a victory for lawmakers there could embolden other countries to pass similar legislation.



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