The removal by several governments and companies in Canada of their Facebook ads could prompt Meta to strike deals with news outlets, though it would likely take a bigger push to compel it to act, experts say.
The tactics adopted by several governments and companies in the country this week could force the hand of the social media giant if other countries and companies follow suit in larger markets, said Sam Andrey, managing director of the Dais Group at the Toronto Metropolitan University.
“I found it interesting how quickly a group of organizations and governments followed, and I’m sure there will be more,” he said.
“The Government of Canada as an advertiser is not a huge loss to them as part of their overall Canadian advertising revenue. But if he sparks a move, you might see them reconsider,” Andrey said.
The federal government – followed quickly by the Government of Quebec, the City of Montreal and media companies Quebecor and Cogeco – announced Wednesday that it will suspend advertising on Facebook and Instagram as tensions with tech titans rise in the subject of the Online News Act.
Bill C-18, passed in June but not coming into force until the end of December, forces digital giants to pay news outlets for content they share or reuse on their platforms .
In response, Meta and Google announced last month that they would remove Canadian media news from their sites before the law takes effect.
Kent Walker, president of global affairs for Google and its parent company Alphabet, said in an interview last week that the law was unenforceable because it puts a price on links, resulting in uncapped financial liability “that no company could accept”.
“I think we need clear financial expectations, and we need a clear and realistic path to exemption that takes into account our trade agreements and other supports we provide for news in Canada,” said said Mr. Walker.
A person representing Meta said the regulatory process would not be able to accommodate the changes the company wants to see, which is why it plans to remove the news from its platforms: “Unfortunately the regulatory process is not equipped to make changes to fundamental features of the legislation that have historically been problematic, and so we expect to comply by ending the availability of information in Canada in the coming weeks. »
The $10 million a year that Canadian Heritage Minister Pablo Rodriguez said he spends on ads with Facebook and Instagram is a tiny fraction of Meta’s $113 billion in advertising revenue last year.
Still, media watchers say Meta may have to reconsider its strategy if major corporations as well as governments crafting similar laws, including the US, UK and Brazil, follow Canada’s lead. .
“Other democratic countries such as the United States and Mexico and the European Union could all take similar principled steps,” said Courtney Radsch, director of the Center for Journalism and Liberty, a Washington-based think tank. .
The six-month period before the bill comes into force gives Ottawa time to decide how to proceed with the regulations.
Canada, a “test” for Meta
When Australia introduced a similar law in 2021, Meta temporarily blocked Facebook news. In this country, Meta and Google have entered into agreements with news publishers, as also required by Bill C-18.
Now Meta may be using Canada as a warning to other countries, Andrey believes.
“They’re worried it could spread from Australia — and now Canada — to much wider jurisdictions,” he said. We are simply in the unfortunate position of being a test for them. If they can hurt us here, will others want to avoid being next? It’s an intimidation tactic. »
Meta said taking down news links simply puts it in compliance with the law.
Beyond dollars and cents, reputations are also at stake.
“I think there is a real risk for Meta, continued Mr. Andrey. There are already concerns about the spread of misinformation and conspiracy theories. If you suppress authoritative sources of information, do you harbor this perception that the information on these platforms is not credible? »
Whether social media users care is another matter. The move by a handful of Canadian governments and telecom companies to pull ads likely won’t get teens’ attention on Instagram. But should bigger, hipper retail brands or celebrities step in, and especially if the user experience changes, the tide might start to turn.
CBC News editor Brodie Fenlon published an article this week describing how he was unable to see the posts on the brand’s Instagram page, which included a note that the content had been blocked “in response to Canadian government legislation.
” Once [ces mesures] deployed, people will care because it adds friction to their internet experience,” Andrey said.
With Tara Deschamps in Toronto and Mickey Djuric in Ottawa The Canadian Press