Facebook recently announced that news content from Canadian publishers will no longer be available on Facebook pages in Canada. This decision has raised many questions among social media users and news publishers in the country. In this article, we will explore the reasons behind Facebook’s actions and the potential impacts.
What did Facebook announce?
On February 17, 2022, Facebook stated that starting on February 28, 2022, pages belonging to Canadian news publishers and users in Canada will not be able to share or post any news content on Facebook. This means that Canadian users will not see any posts with news articles, and publishers’ Facebook pages will be stripped of any news content. However, non-news content such as posts about events, services, and products can still be shared normally.
This change only applies to Facebook itself and does not affect Instagram which Facebook also owns. Additionally, Facebook stated this is in response to the Online News Act which was proposed by the Canadian government in April 2020 and aims to force tech companies like Facebook to pay news publishers for their content.
Why did Facebook make this decision?
Facebook opposes the Online News Act and believes forcing tech platforms to pay news publishers is not the right solution. Instead, Facebook wants to freely negotiate licensing deals with publishers.
By blocking news content in Canada, Facebook aims to pressure the Canadian government into changing the Act. Without the ability to share news which drives significant traffic, Canadian publishers will lose out on revenue and may lobby against the Act alongside Facebook.
Additionally, Facebook claims the Act misrepresents its relationship with publishers. It says it already offers value to publishers by sending them traffic and adding prominence is an imbalance of the relationship.
What does the Online News Act propose?
The Online News Act or Bill C-18 was introduced in April 2020 by the Canadian government led by Prime Minister Justin Trudeau. The key components of the act are:
- Require digital companies like Facebook and Google to negotiate deals to pay Canadian news publishers for their content being shared on their platforms.
- If no deal is reached voluntarily, a federal regulator will step in to force binding arbitration arrangements.
- Arbitration will consider criteria like circulation, revenue, and whether the publisher’s content aligns with Canadian culture to determine payments.
- Fines of up to C$10 million can be levied if digital companies do not comply with the arbitration outcome.
The goal of the act is to create a framework where tech giants compensate Canadian news companies fairly for the content they use to drive revenues.
How have Canadian publishers reacted?
Unsurprisingly, Canadian news publishers are upset with Facebook’s decision. Many of them rely heavily on Facebook to reach readers and generate traffic to their sites. A 2021 report showed nearly 40% of visits to newspaper websites came via Facebook.
They have accused Facebook of abandoning its Canadian users and friends. Some of the reactions include:
- News Media Canada called it “irresponsible corporate behaviour” aimed at preventing compensation for news content.
- The Globe and Mail said this shows the extraordinary power tech giants have over access to news.
- The National Post described Facebook’s move as “nuclear option” intimidation.
Overall, publishers believe Facebook’s decision highlights why government action is needed to restore balance.
How does this impact Canadian news consumers?
For people in Canada who regularly consume news via Facebook, this change means:
- They will no longer see posts containing news articles, videos, etc. from media outlets on their Facebook feed.
- Reading news from Canadian publishers on Facebook will require manually visiting those Facebook pages.
- Alternative platforms like Twitter and direct websites will become vital for accessing Canadian news.
Many feel this is a poor outcome for news consumers just because of a commercial dispute between tech platforms and publishers. There are also concerns over filter bubbles and if the change exacerbates spread of misinformation.
What about news from international sources?
Facebook has clarified that while news content from Canadian publishers will be restricted, international news from sources like CNN, BBC, Fox News, etc. can still be accessed and shared as usual by Canadians on Facebook.
However, content from any publisher that is primarily targeted towards a Canadian audience will be impacted. This means that even international outlets with Canadian articles or operations may have that content blocked on Facebook.
Is this the first time Facebook has done this?
No, Facebook has banned news on its platform in a country before as a reaction to proposed legislation requiring compensation to publishers.
In February 2021, Facebook blocked users and publishers in Australia from sharing or viewing news content on its platform. This was in response to the News Media Bargaining Code passed in Australia which contained similar provisions to Canada’s Online News Act.
After tensions and negotiations, the Australian government made certain amendments following which Facebook restored news access after the ban lasted around 7 days.
Could Facebook pull news in other countries too?
Currently, Canada looks to be the only country facing this news ban by Facebook. However, the action sets a precedent and Facebook could potentially block news in other countries if they enact similar laws.
In the United States, there have been calls for Congress to pass legislation along the lines of the Online News Act. Given the much larger market, it is unclear if Facebook would go as far as completely banning news in the US.
The likelihood of the news ban spreading to other countries depends on whether governments aggressively push for laws requiring payments to publishers despite resistance from Facebook.
What next steps are expected?
In the near term, expect both Canadian publishers and the government to continue applying pressure on Facebook to reverse its decision. Some probable next steps are:
- Publishers appealing directly to Facebook by highlighting impacts of the ban.
- News Media Canada complaining to the Canadian Radio-television and Telecommunications Commission (CRTC).
- Government leaders issuing statements condemning Facebook.
- Reviewing the Online News Act provisions Facebook finds most problematic.
However, Facebook has indicated it will not budge until the Act is amended to its satisfaction. Thus, ultimately the ball lies in the government’s court on whether it will agree to changes or stick firmly to its stance.
Any amendments to the Online News Act will likely take time given the legislative process. So an impasse and news blackout in Canada could continue for weeks or months until a compromise is reached.
Conclusion
Facebook’s decision to block news for Canadian users is controversial but aligned to its business interests. While devastating for publishers in the short run, it may well pressure the government to soften provisions Facebook finds unpalatable in the Online News Act.
This tussle highlights the dominance of tech platforms today in controlling access and reach for publishers. But regulation is trying to shift the balance back towards news media. How things will play out in Canada remains to be seen, but the final outcome will have consequences across the world.