Canada: Facebook will block news for some users – 6/3/2023 – Market

Meta will block news for some users in Canada in an attempt to stop the country’s government from passing a bill that would force online media groups to pay publishers and broadcasters to air their content.

The parent company of Facebook and Instagram said on Friday it would begin testing on both platforms, limiting “a small percentage” of users in Canada from viewing, posting or sharing news.

The move is a show of power as the Ottawa government prepares to pass an Online News Act, which would force big tech groups to negotiate deals with Canadian publishers and media broadcasters privately or through collective bargaining. The law would force internet platforms such as Facebook and Google to enter into arbitration if an agreement is not reached.

Tensions between Meta and the Canadian government have already increased after the company’s president of global affairs, Nick Clegg, threatened in May to block news altogether in the region if the law is passed, which is expected by the end of the month.

Meta said on Friday that the test will allow it to prepare for that eventuality. “The randomized trials will help us build an effective product solution to end news availability in Canada,” Meta wrote, adding that the trials will run over several weeks starting in the next few days.

“We made our choice,” he added. “While these product trials are temporary, we intend to end the availability of news content in Canada permanently following the passage of Bill C-18.”

“The fact that Facebook still refuses to work with Canadians shows how [do Facebook] are deeply irresponsible and aloof,” Pablo Rodriguez, Canadian legacy minister, wrote on Twitter on Friday. “Once again, this is a disappointing move by ‘big tech,’ and Canadians will not be intimidated by these tactics.”

Meta’s decision follows a similar move by Google earlier this year, when it turned off news in its search engine for a few weeks for a small portion – less than 4% – of Canadian users. Prime Minister Justin Trudeau called the decision a “terrible mistake” by Google.

“They’re playing games, frankly,” Paul Deegan, chief executive of trade association News Media Canada, said of Google’s tactics.

Meta faced backlash in early 2021 when it enacted a temporary news blackout in response to a similar bill in Australia, causing controversy as the pages of certain government health organizations and emergency services were also blocked.

Canada’s bill was introduced by lawmakers as a way to level the playing field between the big tech giants and the shrinking digital media industry, giving more power especially to smaller local news players.

Meta says its apps generate engagement for news publishers, not the other way around. He argues that in Canada, the Facebook feed sent over 1.9 billion clicks in the 12 months to April 2022, “free marketing” worth more than $230 million.

In May, Clegg backed out of a hearing before the Canadian Parliament’s Heritage Committee, stating that it was originally called “The information technology industry’s response to Bill C-18”, but was changed at the last minute to “Use current and ongoing series of intimidation and subversion tactics by tech giants to evade regulation in Canada and around the world”.

The company suggested amendments to the bill, including one that would remove hyperlink sharing from its scope. Hyperlinks account for about 90% of the news published on Meta, which means that the impact of the legislation would be greatly diluted if the amendment were approved.

“For someone who has strict paywalls, you can get to the point where you’re undermining the law,” Deegan said. “Currently it is reasonable, fair and balanced.”

Jason Kint, chief executive of Digital Content Next, warned that any news blackout could hurt Meta’s advertising business.

“For a company that has for years portrayed itself as concerned about the integrity of information and misinformation, and the harm that threatens it, they will literally block credible news from the feed and leave it to user-generated content,” he said.

Translated by Luiz Roberto Gonçalves