Pulling ads from Facebook could prod Meta toward inking deals with news outlets, though more momentum would be needed to push it over the edge, experts say.
The tactic adopted by several governments and companies in Canada this week might force the social media giant91裸聊视频檚 hand if other countries and corporations follow suit in larger markets, said Sam Andrey, managing director of the Dais at Toronto Metropolitan University.
91裸聊视频淚 thought it was interesting how quickly a bunch of organizations and governments followed, and I91裸聊视频檓 sure there will be more,91裸聊视频� he said.
91裸聊视频淭he government of Canada by itself as an advertiser is not a huge material loss for them in the scheme of their total Canadian advertising. But if it kicks off a movement then you could see them reconsidering.91裸聊视频�
The federal government 91裸聊视频� followed swiftly by the province of Quebec, the City of Montreal and media companies Quebecor Inc. and Cogeco Inc. 91裸聊视频� said Wednesday they would suspend advertising on Facebook and Instagram as tensions with tech titans rise over the Online News Act.
Bill C-18, passed in June but not set to take effect until late December, forces digital giants to pay media outlets for content they share or repurpose on their platforms.
In response, Meta and Google announced last month they would remove news by Canadian journalism outlets from their sites before the law comes into force. The removal of ads by governments and big companies marks the latest tit-for-tat move in a game of gradual brinksmanship.
Kent Walker, president of global affairs for Google and its parent company Alphabet, said in an interview last week the law is unworkable because it puts a price on links, resulting in an uncapped financial liability 91裸聊视频渢hat no business could accept.91裸聊视频�
A spokesperson for Meta said the regulatory process won91裸聊视频檛 be able to address the changes the company wants to see, which is why it plans to remove news from its platforms.
91裸聊视频淯nfortunately, the regulatory process is not equipped to make changes to the fundamental features of the legislation that have always been problematic, and so we plan to comply by ending news availability in Canada in the coming weeks,91裸聊视频� the California-based company said on Wednesday.
The $10 million a year that Canada91裸聊视频檚 heritage minister said it spends on advertising with Facebook and Instagram amounts to a tiny fraction of Meta91裸聊视频檚 US$113 billion in ad revenue last year.
Nonetheless, media watchers say Meta may have to reconsider its strategy if other governments that are crafting similar legislation 91裸聊视频� including the United States, United Kingdom and Brazil 91裸聊视频� follow Canada91裸聊视频檚 lead.
91裸聊视频淥ther democratic countries such as United States, Mexico, the EU could all take some similar principled steps,91裸聊视频� said Courtney Radsch, director of Center for Journalism and Liberty, a Washington, D.C.-based think tank.
A parallel reaction in the corporate world could carry weight as well 91裸聊视频� as much for reasons of self-interest and perception as principle.
91裸聊视频淚 think that brands recognize the value that news provides them. And there are studies showing that consumers have a better perception of brands that advertise by news,91裸聊视频� Radsch said.
The six-month period before the bill comes into effect gives Ottawa time to decide how to proceed with regulations.
The Canadian approach identifies companies through a regulatory process by the Canadian Radio-television and Telecommunications Commission, an arm91裸聊视频檚-length regulator, based on their size, strategic advantage and whether they occupy 91裸聊视频渁 prominent market position.91裸聊视频�
Meta may be using Canada as a cautionary tale to other countries, Andrey suggested.
91裸聊视频淭hey are worried about this spreading from Australia 91裸聊视频� and now to Canada 91裸聊视频� to much larger jurisdictions,91裸聊视频� he said.
91裸聊视频淲e just have the unfortunate position of being a test case for them. If they can make it hurt here, will others not want to follow? It91裸聊视频檚 bullying tactics.91裸聊视频�
Meta has said pulling news links simply puts it in line with the law.
Beyond dollars and cents, reputations are also at stake.
91裸聊视频淭here91裸聊视频檚 already concern about the spread of disinformation and conspiracy theories. If you remove authoritative news sources, do you feed that perception that the information on these platforms isn91裸聊视频檛 credible?91裸聊视频� Andrey asked.
Whether social media users care is another matter. The disappearance of ads from a handful of Canadian governments and telecoms may not grab the attention of teens on Instagram. But if bigger, hipper retail brands or celebrities chimed in, and especially if the user experience were altered, the tide could start to turn.
CBC News editor-in-chief Brodie Fenlon released an article this week describing how he was unable to see posts on its Instagram page, which noted the content was blocked 91裸聊视频渋n response to Canadian government legislation.91裸聊视频�
91裸聊视频淥nce those roll out, people will care about that, because it91裸聊视频檚 adding friction to their internet experience,91裸聊视频� Andrey said.
The timing is awkward for Meta, which on Thursday launched Threads, a text-based app intended as a rival to Twitter as that platform faces turbulence following Elon Musk91裸聊视频檚 takeover in October.
91裸聊视频淭witter for many years was the place to go to discuss news and current events. Meta is leaning into this space,91裸聊视频� Andrey said. 91裸聊视频淏ut if the users in Canada are not going to be able to link to news, then it91裸聊视频檚 a different type of platform.
91裸聊视频淚 think it presents real risks for Meta,91裸聊视频� he said.
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