Canadian Law Requires That Tech Firms Pay for News Links

The Parliament of Canada passed a law requiring technology companies to pay news outlets when linking to their articles, a move that has Meta Platforms threatening to pull news content from Facebook and Instagram in that country. Canada’s Online News Act, which applies to domestic outlets, is the latest move in a global battle between publishers and Big Tech, and follows a similar law in Australia. “A strong, independent and free press is fundamental to our democracy,” a member of Prime Minister Justin Trudeau’s administration tweeted when the law cleared the vote last week.

The Online News Act aims to force social platforms and search engines to negotiate for news content under licensing deals that include payment — and possibly binding arbitration clauses, too. CBC notes that the legislation takes effect in six months.

At a time when news outlets around the world are struggling, the legislation’s backers see it as a substantive victory for the media “as it fights to make up for plummeting advertising revenue that it attributes to Silicon Valley companies cornering the market for online advertising,” The New York Times reports.

A Canadian government website says the Online News Act seeks to “enhance fairness in the Canadian digital news marketplace and contribute to its sustainability, including the sustainability of independent local news businesses.”

“The Online News Act will help make sure tech giants negotiate fair and equitable deals with news organizations,” Canadian Heritage Minister Pablo Rodriguez tweeted when the news broke late Thursday.

NYT quotes a Google spokeswoman criticizing the law as “‘unworkable’ and said the company had proposed ‘thoughtful and pragmatic solutions’ to improve it.’”

Meta said it plans to stop sharing copyrighted news content in its north-of-the-border feeds, and warned that the change will impact other areas, including services used for fact-checking and business development.

The Verge points out that “Meta has removed news in an entire country in the past. The company pulled news content from Facebook in Australia in 2021 in opposition to a law similar to Canada’s, but it brought news back after the Australian government amended the law.”

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