Canada to Pull Advertising on Facebook, Instagram Amid Media Row -- 2nd Update
05 Luglio 2023 - 10:46PM
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.
Rodriguez added he wants Meta and Google to work with the
government through the regulatory process and find a
compromise.
"Meta has to change its approach," Canadian Prime Minister
Justin Trudeau said, in remarks after Rodriguez unveiled the
advertising decision. "The federal government could not in good
conscience continue to spend taxpayer dollars buying services from
a company that has demonstrated that it doesn't respect Canadian
democracy and the pillars of democracy."
A spokeswoman for Meta said Canada's new law is flawed because
it ignores how Facebook and Instagram work and user preferences,
and fails to account for value the platforms provide news
publishers. The spokeswoman added Meta plans to comply with the law
"by ending news availability in Canada in the coming weeks."
Kent Walker, president of global affairs at Google, said last
week Canada's approach "creates an untenable level of product
uncertainty, financial uncertainty that we don't think any business
would be in a position to accept."
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 15:59 ET (19:59 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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