An anonymous reader quotes a report from the BBC: A bill that mandates tech giants pay news outlets for their content has come into effect in Canada amid an ongoing dispute with Facebook and Instagram owner Meta over the law. Some have hailed it as a game-changer that sets out a permanent framework that will see a steady drip of funds from wealthy tech companies to Canada’s struggling journalism industry. But it has also been met with resistance by Google and Meta — the only two companies big enough to be encompassed by the law. In response, over the summer, Meta blocked access to news on Facebook and Instagram for Canadians. Google looked set to follow, but after months of talks, the federal government was able to negotiate a deal with the search giant as the company has agreed to pay Canadian news outlets $75 million annually.
No such agreement appears to be on the horizon with Meta, which has called the law “fundamentally flawed.” If Meta is refusing to budge, so is the government. “We will continue to push Meta, that makes billions of dollars in profits, even though it is refusing to invest in the journalistic rigor and stability of the media,” Prime Minister Justin Trudeau told reporters on Friday. According to a study by the Media Ecosystem Observatory, the views of Canadian news on Facebook dropped 90% after the company blocked access to news on the platform. Local news outlets have been hit particularly hard.
“The loss of journalism on Meta platforms represents a significant decline in the resiliency of the Canadian media ecosystem,” said Taylor Owen, a researcher at McGill and the co-author of the study. He believes it also hurts Meta’s brand in the long run, pointing to the fact that the Canada’s federal government, as well as that of British Columbia, other municipalities and a handful of large Canadian corporations, have all pulled their advertising off Facebook and Instagram in retaliation.
