Canada has passed a new law, known as the Online News Act, which will require tech giants Google and Meta to pay media outlets for news content that appears on their platforms. The law is a response to the growing concern over the dominance of tech companies in the digital news marketplace and their ability to generate revenue from online advertising. The Canadian government believes that the law creates a level playing field between the tech giants and the shrinking news industry.
The Online News Act requires Google and Meta to enter into agreements with news publishers to pay them for news content that appears on their websites if it helps the tech giants generate money. The law aims to “enhance fairness” in the digital news marketplace and help bring in more revenue for shrinking newsrooms.
The Canadian government has been in a stand-off with tech giants over the issue, with Prime Minister Justin Trudeau’s government insisting that the companies must pay for the news content they use. Meta, which owns Facebook and Instagram, has confirmed that it plans to comply with the law by ending news availability on its platforms in Canada. Google, on the other hand, has hinted that it may remove news links from its popular search engine.
The Bill’s Passage Praises by Legacy Media and Broadcasters
The passage of the Online News Act has been praised by legacy media and broadcasters, who see it as a major step forward in addressing the long-term decline of the news industry. The law is seen as a way to level the playing field and ensure that tech giants are held accountable for their use of news content.
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Prime Minister Justin Trudeau (Via Justin Trudeau/Twitter)
Tech Giants Have Also Taken Similar Steps in the Past
Meta has taken similar steps in the past, such as briefly blocking news from its platform in Australia after the country passed legislation that would compel tech companies to pay publishers for using their news stories. Google is also undergoing a test that blocks news for up to 5% of its Canadian users.
The Law’s Impact and Implementation
The Online News Act will come into force six months after it receives royal assent, and the Canadian government is set to have a meeting with Google to discuss the law’s implementation. The law is seen as a major step forward in addressing the long-term decline of the news industry and ensuring that tech giants are held accountable for their use of news content.
The passage of the Online News Act is seen as a major victory for the Canadian government and the news industry, and it is hoped that it will lead to a more level playing field and more revenue for news publishers.
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