Facebook and Instagram will block users from viewing Canadian news after a new law passed by the parliament, Meta said.

Google Considers Similar Move

Google, another critic of the Online News Act, has previously said it is considering a similar move.

Pushback Against the Bill

The two Silicon Valley giants have pushed back against the bill, which aims to support a struggling Canadian news sector that has seen hundreds of publications closed in the last decade.

“Exciting news! (No pun intended),” Heritage Minister Pablo Rodriguez tweeted after the bill passed a final hurdle in the Senate on its way to becoming law.

Regrettable Decision

He said Meta’s decision to block news content was regrettable, but vowed to “stand up for Canadians against tech giants.”

His office said officials met with Facebook and Google this week and looked forward to further discussions about the new law.

Prime Minister Justin Trudeau last month slammed Meta for a trial run of blocking Canadian news content for some users, saying the company was being “deeply irresponsible and out of touch” for refusing to pay journalists for their work.

Opposition to the bill, he said, was “flawed (and) dangerous to our democracy, to our economy.”

Google Also Restricts Access to News

Google in February had also temporarily limited access to news for Canadian users of its popular search engine.

In a statement on Thursday, Meta said it was “confirming that news availability will be ended on Facebook and Instagram for all users in Canada.”

“The changes affecting news content will not otherwise impact Meta’s products and services in Canada,” it added.

Google spokesperson Jenn Crider said it is “doing everything we can to avoid an outcome that no-one wants” and is seeking to work with the government “on a path forward.”

The company has proposed amendments to the bill, but Crider said Thursday: “So far, none of our concerns have been addressed.”

New Law Requires Fair Deals with Canadian Outlets

The new law requires digital giants to make fair commercial deals with Canadian outlets for the news and information that is shared on their platforms, or face binding arbitration.

It builds on Australia’s New Media Bargaining Code, a world first, aimed at making Google and Meta pay for news content on their platforms.

Australia, too, had accused the two companies, who dominate online advertising, of draining cash away from traditional news organizations while using their content for free.

Big tech firms had fiercely opposed the Australian legislation initially, fearing it would threaten their business models, but with amendments it was easily passed by lawmakers.

During the fight, Facebook blacked out Australian news pages and only restored them once the government granted concessions.

Yet in the year following the law taking effect, Meta and Google have paid some A$200 million ($134 million) annually to Australian news outlets, according to a report from the former chair of Australia’s competition regulator.

Similar Rules in the Works for Meta’s Home State

Lawmakers are pushing for similar rules in Meta’s home state of California and in the U.S. Congress. Meta says it makes 40% of its revenue, which was $117 billion last year, in the U.S. and lists Australia and Canada among its most significant markets. If Meta fails to secure exemptions or get the rules changed in Canada, the tech giant may face a similar fate in the United States.

In 2022, U.S. lawmakers released a revised version of a bill aimed at making it easier for news organizations to negotiate collectively with platforms like Google and Facebook.

The New Zealand government said in 2022 it would introduce a law requiring big online digital companies to pay New Zealand media companies for the local news content that appears on their feeds.