Canada to Pull Advertising on Facebook, Instagram Amid Media Row
July 05 2023 - 3:41PM
Dow Jones News
By Paul Vieira
OTTAWA-Canada said Tuesday it would pull its advertising on
Facebook and Instagram in response to their owner Meta Platforms'
threat to ban access to news reports on its platform for Canadian
users.
This marks the latest salvo in a row pitting Canada's Liberal
government and the big digital platforms, most notably Meta and
Google, which is owned by Alphabet. Canada's parliament approved
legislation about two weeks ago to compel digital platforms to
compensate domestic media outlets for links to their articles.
Meta said at the outset it would block news content to users in
Canada, and last week Google said it would remove links to news
articles on its search function for Canadian users, once the new
law takes effect, in roughly six months.
Canada's Heritage Minister Pablo Rodriguez said Tuesday he's
confident the government can resolve Google's concerns through
regulations, which officials are currently working on to guide
implementation. Rodriguez, however, said Canada would cease
advertising on Facebook and Instagram. Last year, Canada spent 11.4
million Canadian dollars, or the equivalent of US$8.6 million, on
advertising with Facebook and Instagram.
"Meta is not talking to us. It's not good for anyone," said
Rodriguez, who has called on the digital platforms to contribute
financially to help the country's struggling media. He added he
wants Meta and Google to work with the government through the
regulatory process and find a compromise.
Representatives from both Meta and Google didn't immediately
respond to a request for comment.
News Media Canada, a lobby group for news publishers, applauded
Canada's decision regarding advertising on Facebook and Instagram.
"We expect this will encourage corporate advertisers, who value a
free and plural press, to put their money where their mouth is,"
said Paul Deegan, the group's chief executive.
The law aims to provide media outlets with a financial lifeline
to offset the loss of advertising revenue that has migrated to the
digital sphere. If negotiations fail, the law calls for the two
sides to enter binding arbitration to determine appropriate
compensation.
Meta and Google have argued the law would put a price on free
links to webpages, which contravenes copyright legislation and
upends the concept of an open internet where users can search and
connect to material without restrictions.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
July 05, 2023 13:19 ET (17:19 GMT)
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