In a disagreement between technology giants and the Canadian government, Alphabet's Google and Meta Platforms, formerly known as Facebook, have been accused of employing "bullying tactics" by Canadian Prime Minister Justin Trudeau.
As reported by Reuters, the dispute centers around proposed legislation aimed at ensuring financial support for news publishers, which would require internet giants to negotiate commercial deals and compensate publishers for their content.
The Online News Act
Canada's media industry has long called for increased regulation of technology companies to prevent them from dominating the online advertising market and squeezing out traditional news businesses.
The proposed bill, introduced in April 2022, will make it mandatory for tech companies to negotiate with news publishers and pay for the use of their content.
The bill, known as the "Online News Act," has received backing from Canada's House of Commons and is currently under review in the Canadian Senate.
However, Google and Facebook argue that the proposed rules are unsustainable for their businesses and could have detrimental effects on the online platforms they provide.
Earlier this year, both Google and Facebook conducted tests to limit the accessibility and sharing of news content in Canada as a potential response to the legislation.
Bullying Tactics?
These actions drew criticism from Prime Minister Trudeau, who denounced the companies for prioritizing their own interests over providing Canadians with access to local news.
"The fact that these internet giants would rather cut off Canadians' access to local news than pay their fair share is a real problem, and now they're resorting to bullying tactics to try and get their way - it's not going to work," Trudeau emphasized during a press conference in Ottawa.
Trudeau argues that the substantial profits generated by companies like Meta, while local news outlets struggle, necessitate their fair contribution to strengthening democracy.
Meta, Google Responds
Google, in response to Trudeau's remarks, expressed concerns about the proposed legislation, suggesting that it goes beyond the scope of regulations enacted in Australia and Europe.
Shay Purdy, a spokesperson for Google, stated that the bill "has some serious problems that make it unworkable for our products and services."
In a 2022 statement, Google claimed that "the bill would force Google to subsidize outlets that do not adhere to any journalistic standards, creating a regime that allows bad actors and those peddling misinformation to thrive and profit."
Meta, on the other hand, criticized the bill, asserting that news has no economic value for its platforms. The company declared the legislation to be fundamentally flawed, raising further questions about the future of the proposed regulations.
Nick Clegg, Meta's president for global affairs, asserts that "if this flawed legislation is passed, [Meta] will have to end the availability of news content on Facebook and Instagram in Canada" and that "Meta does not benefit unfairly from people sharing links to news content on our platform."
As the debate continues between the Canadian government and technology giants, the outcome of the Online News Act remains to be determined.
While the bill has garnered significant support from lawmakers and the media industry, it faces resistance from Google, Meta, and other opponents who argue that it would adversely affect their operations.
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