Canada has pulled its advertising from Facebook and Instagram in an escalating row over a new law that would force tech giants to pay news outlets for content.
The move came after the Facebook parent firm Meta restricted Canadian news content from its platform in response to the new law.
Canada Pulls Ads on Facebook, Instagram
As per BBC, Canada has decided to withdraw its ads from giant Meta services, Facebook and Instagram, amidst an escalating news row. Canadian officials say that they continue to stand by the Online News Act, adding that they will not succumb to the intimidation efforts of Meta.
According to CBC Canada, Heritage Minister Pablo Rodriguez confirmed that the federal government suspended all Facebook and Instagram ads. The pull-out is in response to Meta's recent decision to restrict news content on its platforms.
The Canadian parliament passed the Online News Act, known as C-18, into law last June 22. It requires tech giants like Meta and Google to pay news outlets for their content.
Besides the Canadian government, Channel News Asia reports that media giants in Quebec, such as Cogeco and Quebecor, also announced that they are removing their advertisements on Meta amid the new row.
Meta Restricts News on Facebook in Canada
The law, known as the Online News Act, would require tech giants to negotiate with news outlets over payments for shared content or re-purposed on their platforms. However, the Facebook parent says that the law is unfair and would stifle innovation.
Meta told BBC that the Online News Act "is flawed legislation that ignores the realities of how our platforms work." The Zuckerberg-led firm stresses, "Publishers actively choose to post on Facebook and Instagram because it benefits them to do so."
Prime Minister Justin Trudeau addresses the ongoing news row in his Wednesday, July 5 remarks. He believes tech giants like Meta use Canada as a testing case for similar laws globally.
Trudeau claims, "This is what they want to do, make an example of us." He adds, "Facebook decided that Canada is a small enough country that they could reject our asks." But despite that, the Prime Minister declares, "They made the wrong choice by deciding to attack" the Canadian nation.
The giant firm has started restricting access of some Canadian to news content in its tests. The Instagram parent threatened to expand the restriction to a full-blown blackout of news materials in the coming weeks.
Some users on IG have begun seeing pop-ups that block news content. Some users saw a message: "In response to Canadian government legislation, news content [cannot] be viewed in Canada."