What’s the story
In June 2023, the Canadian government passed the Online News Act, a legislation aimed at ensuring “fairness in the Canadian digital-news marketplace.”
The law was designed to force Google and Meta to compensate news outlets, when their articles appear on search results or social feeds.
However, this move did not go as intended as Meta decided to block news links on Facebook.
News publishers are now complaining of diminished online traffic, which in turn has led to revenue going down.
How did Google and Meta respond?
In response to the Online News Act, Google agreed in November 2023 to contribute C$100m ($74 million) annually to a government-run fund for Canadian newsrooms.
However, Meta, the parent company of Facebook, declined. It stated that news constitutes less than 3% of the Facebook feed globally, and holds little value for it.
Consequently, instead of paying, Meta chose to block news links from its apps.
Meta unfazed by Canadian ad boycott
Since August 2023, users of Facebook and Instagram in Canada have been unable to view or share links to any news site due to Meta’s decision.
Despite an ad boycott led by the Canadian government, the absence of news has not affected Meta’s user base or revenue there.
Sensor Tower reports that app downloads have remained steady, and Meta’s ad revenue across the US and Canada has grown 19% in the nine months, since the news blackout began.
News blackout severely impacts Canadian news outlets
The news blackout has had a significant impact on news organizations.
A study by researchers at McGill University and the University of Toronto, found that six months after the blackout, Canadian national news outlets lost 64% of their “engagement” on Facebook, while local outlets lost 85%.
Almost half of local titles stopped posting on Facebook altogether.
Paul Deegan, head of News Media Canada, described Meta’s blackout as “absolutely devastating.”
News outlets adapt, misinformation concerns rise
In response to the ban, readers have found ways to share news by posting screenshots of articles.
News outlets are also adapting by signing up readers to email newsletters, building mobile apps, and using QR codes to direct readers to their websites.
However, Pascale St-Onge, the minister responsible for the act, noted an “explosion of disinformation and misinformation” since the ban.
Fact-checking organization NewsGuard found that “unreliable” sources accounted for 6.9% of engagement with news on Facebook in Canada.
Meta’s news link blocking under regulatory scrutiny
Canada’s communications regulator will decide later this year, whether Meta’s blocking of news links excuses it from making payments under the Online News Act.
News Media Canada has lodged a complaint with Canada’s competition regulator, arguing that Meta’s link-blocking is an abuse of its dominant position.
The experience in Canada may cause other countries considering similar laws to reconsider.
Meta appears emboldened by its Canadian experience, and claims it would not renew news deals it had earlier struck in Australia.
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Source Link: https://www.newsbytesapp.com/news/science/how-facebook-s-news-ban-affected-canadian-media/story
Did Facebook’s news ban cripple Canadian media?
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