Title: The Battle Between Canadian Government and Tech Giants Over News Content
Introduction
As the Canadian government prepares to pass its Online News Act, a bill that would force technology companies such as Facebook and Google to initiate mandatory arbitration with Canadian media publishers and broadcasters, tensions continue to rise between the tech giants and the government. Meta, the parent company of Facebook and Instagram, announced on Friday its plans to restrict “a small percentage” of users in Canada from viewing, posting or sharing news content, as part of its move to dissuade the Canadian government from passing the bill. This article delves deeper into the ongoing battle between the Canadian government and tech giants over the availability of news content in Canada.
The Background
As the world becomes increasingly reliant on digital mediums to access information, the media industry has undergone a significant transformation. Traditional publishers and broadcasters have struggled to contend with the rise of online platforms such as Facebook and Google, which have become significant distributors of news content. The Canadian government’s Online News Act aims to level the playing field between the tech giants and the shrinking digital media industry, which has been further impacted by the COVID-19 pandemic.
The Ongoing Battle
Meta’s decision to restrict news content for some users in Canada is a show of power as Ottawa prepares to pass the Online News Act. The company claims that the move is part of a randomized trial that will help them prepare for a potential eventuality where news availability is ended in Canada permanently. This announcement comes after Meta’s president of global affairs, Nick Clegg, threatened to block news in the region altogether if the law is passed, which is expected by the end of the month.
In response, Pablo Rodriguez, Canada’s heritage minister, expressed disappointment and called Facebook’s decision deeply irresponsible and out of touch. Google also faced a similar backlash earlier this year when it disabled news in its search engine for less than 4 percent of Canadian users for a couple of weeks. The decision was labelled a “terrible mistake” by Prime Minister Justin Trudeau. The ongoing battle between tech giants and governments around the world is approaching a critical juncture as discussions over the regulation of online platforms continue.
The Impact of the Canadian Online News Act
The Canadian Online News Act has been viewed by lawmakers as a way to empower small local news operators, particularly those that have struggled to compete with the tech giants’ vast resources. The proposed bill would force big tech groups to negotiate deals with Canadian media publishers and broadcasters either privately or through collective bargaining. It also mandates that internet platforms initiate mandatory arbitration if a deal cannot be reached. However, Meta claims that its apps drive news publisher engagement, not the other way around, and that the bill undermines the free and open nature of the internet. The company has suggested changes to the bill, including removing hyperlink sharing from its scope, which accounts for about 90% of news posted on Meta. The impact of the legislation would be seriously mitigated if the amendment is passed.
The Future of News Content in Canada
The ongoing battle between the Canadian government and tech giants underscores the critical importance of online platforms in the distribution of news content. As digital media continues to transform the industry, it is increasingly necessary to balance the interests of traditional publishers and broadcasters with those of tech giants. The key to this balance lies in effective regulation that empowers local news operators while encouraging innovation and competition. The ongoing struggle in Canada represents a crucial moment in the evolution of the digital media industry, and the outcome of this battle will have significant implications for the future of news content in the country.
Summary
Meta’s decision to restrict news content for some users in Canada is a show of power ahead of the country’s planned Online News Act. The proposed bill would force big tech groups to negotiate deals with Canadian media publishers and broadcasters either privately or through collective bargaining. Meta claims that its apps drive news publisher engagement, not the other way around, and has suggested changes to the bill, including removing hyperlink sharing from its scope. The ongoing struggle in Canada represents a crucial moment in the evolution of the digital media industry, and the outcome of this battle will have significant implications for the future of news content in the country.
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Meta will block news for some users in Canada as it tries to dissuade the country’s government from passing a bill that would force online groups to pay publishers and broadcasters to carry their content.
The parent company of Facebook and Instagram said on Friday it would begin tests on both platforms that would restrict “a small percentage” of users in Canada from viewing, posting or sharing news.
The move is a show of power as Ottawa prepares to pass its Online News Act, a bill that would force big tech groups to negotiate deals with Canadian media publishers and broadcasters, either privately or through collective bargaining. The proposed law would force internet platforms like Facebook and Google to initiate mandatory arbitration if a deal cannot be reached.
Tensions between Meta and the Canadian government have already flared after the company’s president of global affairs Nick Clegg in May threatened to block news in the region altogether if the law is passed, which is expected by the end of the month.
Half he said Friday that the test would allow him to prepare for such an 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 last for several weeks, starting in the next few days.
“We made our choice,” he added. “Although these product tests are temporary, we plan to permanently discontinue the availability of news content in Canada after the passage of Bill C-18.”
“The fact that Facebook still refuses to work with Canadians shows how deeply irresponsible and out of touch they are,” Pablo Rodriguez, Canada’s heritage minister, wrote on Twitter. “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 disabled news in its search engine for a couple of weeks for a small fraction — less than 4 percent — of Canadian users. Prime Minister Justin Trudeau called the decision a “terrible mistake” by Google.
“They’re playing games, frankly,” said Paul Deegan, managing director of trade association News Media Canada, of Google’s tactics.
Meta faced a knockback in early 2021, when it enacted a temporary news blackout in response to a similar bill in Australia, causing controversy as the pages of some government health organizations and emergency services were also blocked.
The Canadian bill has been touted by lawmakers as a way to level the playing field between the big tech giants and the shrinking digital media industry, by empowering small local news operators in particular.
Meta claims its apps drive news publisher engagement, not the other way around. She claims that in Canada, the Facebook feed sent more than 1.9 billion clicks in the 12 months to April 2022, “free marketing” worth more than $230 million.
In May, Clegg withdrew from a hearing in Canada’s Parliamentary Heritage Committee, saying it was originally titled “Information Technology Firms’ Response to Bill C-18,” but was was changed at the last minute to “Tech Giants’ Current and Ongoing Use of Intimidation and Subversion Tactics to Evade Regulation in Canada and Around the World”.
The company has suggested changes to the bill, including one that would remove hyperlink sharing from its scope. Hyperlinks account for about 90% of news posted on Meta, meaning the impact of the legislation would be seriously mitigated if the amendment is passed.
“For someone with a tough paywall, it can get to the point where you’re gutting the bill,” Deegan said. “It’s currently reasonable, fair and balanced.”
Jason Kint, chief executive officer of Digital Content Next, warned that any news blackout could hurt Meta’s advertising business.
“For a company that for years has portrayed itself as concerned with information integrity, misinformation and the harm that comes with it, they will literally block credible news from the feed and leave it to user-generated content,” he said.
https://www.ft.com/content/65ae7aef-7dce-4e61-bf6d-f498bd298527
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