Meta, the parent company of Facebook, announced that it would be blocking access to news on Facebook and Instagram in Canada after the country’s federal government passed the Online News Act, also known as Bill C-18. The law mandates that technology companies pay content fees to local media outlets.

Impact of Bill C-18

According to Meta’s statement released on Thursday, the company has repeatedly shared that in order to comply with Bill C-18, content from news outlets, including news publishers and broadcasters, will no longer be available to people accessing their platforms in Canada. The company is currently conducting several weeks of product tests to “end news availability in Canada” following the decision made by Parliament.

The move follows a similar law passed in Australia last year, which mandated that digital platforms such as Facebook and Google pay local media outlets when linking to their content in search or feeds. In response, Meta took a similar approach to its current strategy in Canada by blocking users from seeing or sharing news content on Facebook. It also reportedly blocked some pages for hospitals and emergency services.

Deal with Australian Government

After a week, however, Meta relented and came to an agreement with the Australian government via amendments to the law, allowing technology companies two months to negotiate with media outlets.

California Lawmakers Pass Bill

Earlier this month, California lawmakers advanced a bipartisan bill that would require digital platforms to pay news outlets for the content they host, becoming the first U.S state to consider such a proposal. If the legislation is approved by the state Senate and passed into law, online platforms with at least 50 million monthly active U.S. users, a billion worldwide active users, or U.S. net annual sales or market cap over $550 billion would be required to pay eligible media outlets for hosting their content.

Meta has stated that it will remove news from Facebook and Instagram if the law passes in California, similar to its current strategy in Canada.

Meta’s decision to shut down access to news on Facebook and Instagram in Canada following the Online News Act highlights the increasing pressure on technology companies to pay content fees to local media outlets. This move follows a similar approach taken in Australia, where Meta eventually came to an agreement with the government. The proposed bill in California, if passed, would require technology companies to pay eligible media outlets for hosting their content, indicating that the issue is not going away anytime soon.

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