By Paul Vieira

 

OTTAWA--Lawmakers in Canada's legislature on Wednesday approved legislation, in a 213 to 114 vote, that compels big digital platforms like Google and Facebook to compensate domestic media outlets.

The legislation has cleared an important hurdle, which represents part of Canada's plan to regulate the impact of digital platforms on society.

The bill requires digital companies to negotiate with news publishers on compensation for news stories appearing on their platforms. Failure to reach an agreement would lead to both sides entering into binding arbitration, according to the legislation.

Facebook owner Meta Platforms Inc. had previously warned parliament it could block access to Canadian news content -- like it did in Australia last year -- should the legislation come into force. The company reiterated that threat on Wednesday after the vote.

Approval of the bill "forces us to consider removing news from Facebook in Canada rather than being compelled to submit to government-mandated negotiations that do not properly account for the value we provide publishers," said Rachel Curran, head of public policy in Canada for Meta Platforms.

Google parent Alphabet Inc. also opposes the bill. The Canadian Radio-Television and Telecommunications Commission would be responsible for ensuring enforcement.

The bill now heads to the Canadian senate, which also must give its approval before the legislation becomes law. "We urge the senate to seriously examine the implications of a bill that will impact how information is shared online and harm innovative local news outlets," Ms. Curran said.

The senate is currently reviewing legislation that would require online streaming companies and platforms like YouTube and TikTok to prominently showcase Canadian artists ahead of foreign-made content. Canada's upper house is expected to amend the streaming legislation, with a final decision likely in February. A senate committee that reviewed the legislation has proposed 26 amendments.

Canada's parliament is set to break for the holiday season, with lawmakers not scheduled to return until late January.

 

Write to Paul Vieira at paul.vieira@wsj.com

 

(END) Dow Jones Newswires

December 14, 2022 17:03 ET (22:03 GMT)

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