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The Online News Act, passed by the Canadian parliament, would force platforms like Google parent Alphabet (NASDAQ:GOOGL) and Meta to negotiate commercial deals with Canadian news publishers for their content.
“News outlets voluntarily share content on Facebook and Instagram to expand their audiences and help their bottom line,” Rachel Curran, Meta’s head of public policy in Canada, said. “In contrast, we know the people using our platforms don’t come to us for news.”
The office of Canadian Heritage Minister Pascale St-Onge, who is in charge of the government’s dealings with Meta, did not immediately respond to a request for comment.
In a campaign against the law, which is part of a broader global trend to make tech firms pay for news, both Meta and Google said in June they would block access to news on their platforms in the country.
Canada’s legislation is similar to a ground-breaking law that Australia passed in 2021 and had triggered threats from Google and Facebook to curtail their services.
Both the companies eventually struck deals with Australian media firms after amendments to the legislation were offered.
But on the Canadian law, Google has argued that it is broader than those enacted in Australia and Europe as it puts a price on news story links displayed in search results and can apply to outlets that do not produce news.
Meta had said links to news articles make up less than 3% of the content on its users’ feed and argued that news lacked economic value.
Canadian Prime Minister Justin Trudeau had said in May that such an argument was flawed and “dangerous to our democracy, to our economy.”
