Canada to stop advertising on Facebook and Instagram and enact law for companies to pay for news

(Patria) - The Canadian federal government said it would pull all of its advertising from Facebook and Instagram, the BBC reported.

This follows a move by parent company Meta to limit news content for Canadians after parliament passed a law that will force tech firms to pay news outlets for news.

Canadian officials said they are sticking to the law and that Meta will not "intimidate" them. They said they have been in contact with other countries planning to enact similar laws.

Google has also announced plans to block news in Canada in response to the Online News Act, known as Bill C-18, when it comes into effect in about six months. Canadian officials said they hope to reach an agreement with Google's parent company Alphabet and prevent further blocking.

"Google's concerns can be satisfied by what we plan to do in (legal) regulations," said Minister Pablo Rodriguez. He also said that Meta has not cooperated with the government in the same way.

"Meta is not talking to us," he said, adding that their decision to block news for Canadians is "unreasonable and irresponsible".

Rodriguez estimates that Canada's decision to withdraw ads on Meta's platforms will cost the tech giant 10 million Canadian dollars ($7.54 million). Meta's annual revenue in 2022 was $116 billion.

The federal government says the law is necessary to allow struggling news organizations to "secure fair compensation" for news and links shared on tech platforms. A similar law to Bill C-18 was passed in Australia in 2021, but it was amended after Meta briefly blocked users in the country from sharing or viewing news on its platform.

Prime Minister Justin Trudeau said he believes Canada has become a global test case for laws like Bill C-18.

"This is what they want to do, to set an example for us," Trudeau said about the tech giants.

"Facebook has decided that Canada is a small enough country that they can refuse our demands," he said.

"They made the wrong choice by deciding to attack Canada," he added.

US Democratic Senator Amy Klobuchar, who is leading the push for a similar law in Washington D.C., has supported the Canadian law.