Canada to Stop Advertising With Meta
On Wednesday, Canada's federal government announced it would stand by its Online News Act – or Bill C-18 – and stop advertising on Meta-owned platforms, including Facebook and Instagram, in response to the company’s reaction to the law.
Facts
- On Wednesday, Canada's federal government announced it would stand by its Online News Act – or Bill C-18 – and stop advertising on Meta-owned platforms, including Facebook and Instagram, in response to the company’s reaction to the law.1
- The Online News Act, which takes effect at an unspecified date in the next six months, will require tech companies to pay media platforms for news. Meta recently announced it will restrict news content in Canada rather than deal with the law.1
- The platforms stand to lose around $7.5M if the government ceases paying for advertising.2
- After the announcement, Quebec Premier François Legault tweeted that the province would also suspend advertising on Facebook and Instagram, and Montreal Mayor Valerie Plante said her city would follow suit.3
- Canadian telecoms companies Quebecor and Cogeco, which run radio stations in Quebec, also said they would stop advertising with Meta platforms.2
- Although the Liberal and NDP parties said they would continue advertising on Meta platforms, PM Justin Trudeau said he expects more governments and companies will stop their advertising in the coming days.4
Sources: 1BBC News, 2New York Post, 3ABC News, and 4CBC.
Narratives
- Establishment-critical narrative, as provided by Toronto Sun. The Canadian government is practicing what it preaches by pulling its ads from Meta. Though $10M dollars is nothing to the tech giant, the principle behind the move is what's most important. Canadian newspapers are drowning under the weight of social media, and there won't be any independent, objective outlets for Canadians to read unless the government steps in to help.
- Pro-establishment narrative, as provided by BBC News. Social media platforms have no choice but to restrict Canadian news content in the face of an unworkable bill that hasn’t taken the tech companies’ suggestions into consideration. Canada is only hurting itself because now the country’s major media associations and outlets will lose the traffic Google and Meta generate. The government should negotiate a better deal with these companies.
