Meta may stop sharing news if Canada passes regulatory bill.

Meta Threatens to Stop Sharing News in Canada Over Pending Legislation

Facebook parent company Meta has taken a hardball approach towards pending legislation in Canada that would force it to share more profits with journalism outfits. In response, the company has threatened to stop sharing news altogether in the country. This form of regulation has gained support in the United States as well.

The Invidious Position of Meta

“This legislation puts Meta in an invidious position,” said Meta spokesman Nick Clegg in prepared testimony made public on Monday. “In order to comply, we have to either operate in a flawed and unfair regulatory environment or we have to end the availability of news content in Canada. With a heavy heart, we choose the latter.”

The Legislation in Question

The legislation in question, C-18, would force Big Tech companies to negotiate compensation deals with news organizations so that they must pay them for all content published on their platforms. The bill is intended to help the Canadian news industry thrive in light of a waning advertising industry. The House of Commons has approved the bill, and the Senate is considering it. It is expected to pass by summer.

Clegg said the bill is “flawed legislation” that would “subsidize big broadcasters at the expense of independent publishers and digital news sites.”

Facebook’s History of Threatening to Pull News

Facebook has threatened to pull news in past tussles with governments. Congress is considering a similar bill in the Journalism Competition and Preservation Act in 2023. The bill was pushed through the Judiciary Committee last term but failed to pass due to disagreements about amendments. Meta made similar threats over the JCPA.

The company banned sharing and viewing news stories in Australia after the country passed a law requiring the Big Tech giant to pay news outlets for their content. Yet the ban was reversed within days after international pressure.

Desantis Takes Aim at Big Tech But Clocks Small Businesses Instead

It’s not just Canada and the United States that are grappling with the issue of Big Tech and news sharing. Florida Governor Ron DeSantis recently signed a bill that would fine social media companies for banning political candidates. However, the bill has been criticized for potentially harming small businesses instead of the intended targets.

Conclusion

The issue of Big Tech and news sharing is a complex one, with valid arguments on both sides. As legislation continues to be proposed and debated, it remains to be seen how companies like Meta and Facebook will respond.

• Will they continue to threaten to pull news?
• Will they negotiate compensation deals with news organizations?
• Or will they find a new solution altogether?

Only time will tell.