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Update July 7 - Postmedia has also joined the list - “Our government recently made important steps by passing the Online News Act,” said Andrew MacLeod, President and CEO, Postmedia. “There is no greater proof of the critical need for this law at this time than the actions taken upon its passing. We hope to work together to ensure that all parties can do what the Online News Act allows for, to bargain fairly, level the playing field and preserve journalism in Canada.”
Update July 6 - Torstar has joined the growing list - "It is critical that we ensure all Canadians have full access to trusted, reliable news and journalism," said Neil Oliver, Torstar CEO. "By its action, Meta will be deliberately closing one of the main ways that Canadians currently access news. Such access is critical for the long-term health of our democracy."
Google was quick to respond to the new law, a few days later Facebook followed with their response. Both companies stating they will no longer share links to media outlets. Their moves are yet another disappointing sign on how the media industry in Canada is at a very troubling point in time.
Several media outlets are now hitting back and putting a pause on their advertising with Meta which will cost the social network millions in lost revenue.
Cogeco issued a press release stating 'Meta's threats are an attempt to force Canada to abandon a fair negotiating regime with companies whose news content is shared on its platforms. Despite its public statements, Meta's main concern is to limit the royalties it will have to pay to companies responsible for making credible news content available.'
Quebecor - "In view of Meta's categorical refusal to enter into negotiations, Quebecor announces that, effective immediately and until further notice, it is withdrawing all advertising by its subsidiaries and business units from Facebook and Instagram."
CBC - also issued a press release stating 'Access to news, a plurality of voices and a diversity of viewpoints are all cornerstones of a healthy democracy. We join other Canadian media organizations that are calling for Canadians' access to news — all news, from all outlets, both public and private — to be protected.'
Heritage Minister Pablo Rodriguez says the federal government will also join the battle against Google and Meta. "Facebook has decided to be unreasonable, irresponsible and started blocking news," Rodriguez said Wednesday at a joint press conference with the NDP's Peter Julian and the Bloc Québécois' Martin Champoux. "This is why today we are announcing the Government of Canada will be suspending advertising on Facebook and Instagram.
It has been said that the federal government spends $11 million per year, while less than that, only $10 million from those same budgets is invested in all Canadian broadcasters.
As True Media Canada's Bruce Neve put it, this situation has become a "clusterfck."
This is not the first time that companies and government have expressed outrage agains tech giants like Google and Meta. It is also not the first time companies have banned together to pause advertising on their platforms. Will this time result in anything different?
Companies mentioned in this article:
(click on the link to view the agency’s Vendor Directory listing)
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