Canada Stands Firm: Government Stops Ad Purchases on Facebook and Instagram amidst Dispute Over New Law

The Canadian government, with Pablo Rodriguez, the Heritage Minister, at the helm, announced on Wednesday that it will cease purchasing ads on Meta-owned platforms Facebook and Instagram. This action comes in the wake of an escalating dispute concerning the recently enacted Online News Act, or Bill C-18.
Last month, Bill C-18, a law compelling tech giants such as Meta and Alphabet, Google’s parent company, to remunerate online news publishers, was passed. In retaliation, both Meta and Alphabet declared their intentions to halt news access on their platforms within Canada.
“Canada is going to continue to stand firm and ensure that, if social media platforms and internet giants want to use media, they actually ensure that they’re paying their fair share for it,” stated Prime Minister Justin Trudeau. While the implementation rules for the law are yet to be finalized, the government anticipates that the platforms will have to share some advertising revenue when the law comes into effect by the end of this year.
Despite the ongoing dispute, Rodriguez, who introduced the bill in 2022, remains hopeful. He shared that the government is still open to discussions with the platforms. The bill was proposed following pleas from the Canadian media industry for tighter regulation of internet giants to aid news businesses in recuperating financial losses from the years Facebook and Google dominated the online advertising market.
The minister revealed that around 80% of all advertisement revenue in Canada—roughly 10 billion Canadian dollars ($7.5bn) in 2022—went to Google and Facebook. The Liberal government wants these platforms to contribute to domestic journalism. The decision to suspend government ads on Facebook and Instagram will cost Meta about 10 million Canadian dollars ($7.5m) per year.
Rodriguez added, “Facebook refused to discuss and they did not want to compensate the media accordingly, and so we’ve decided to suspend advertising.” Meanwhile, Meta holds that news does not provide economic value for the company and that news organizations benefit from sharing their reports on Facebook.
The Canadian government’s face-off with these internet giants might set a precedent for other countries contemplating similar regulation of internet companies. Democratic US Senator Elizabeth Warren, a progressive voice, expressed her support for Canada, praising its leaders for standing firm against these tactics and opposing Big Tech’s “freeloading off local news.”
Last week, Canadian telecom operators Quebecor and Cogeco also announced their decision to halt advertising on Facebook and Instagram in protest of Meta’s opposition to the new law. Chestermere’s residents, along with all Canadians, are eagerly watching the unfolding of this digital David and Goliath battle.