Why did Meta block Canada’s access to news reports?

Why did Meta block Canada’s access to news reports?

Subject: Science and technology

Section: Awareness in IT

Context:

On August 1st, Meta announced it would block Canadians from posting news on Facebook and Instagram, in response to Canada’s Online News Act that came into effect on July 22nd.

Why did Meta block Canadian news access?

• Meta blocked Canadian news due to the Online News Act, enacted on July 22, 2023.
• The law mandates compensation from tech giants like Meta and Google to authorized Canadian news publishers for content on their platforms.
• Meta found compliance unfeasible, leading to the news availability termination on August 1, 2023.

What is the Online News Act’s purpose?

• The Online News Act requires digital platforms with strategic market dominance, as outlined by the Canadian Radiotelevision and Telecommunications Commission, to negotiate and compensate news publishers fairly for content usage.
• The government also has the authority to influence how platforms treat news topics.

Why was the Act enacted?

• The Act responds to the unequal influence tech giants like Meta and Google have on online ad revenue and content distribution.
• Modeled after Australia’s News Media and Digital Platforms Mandatory Bargaining Code, it aims to establish a balanced relationship between platforms and news publishers.

Why is revenue-sharing being emphasized?

• The existing model allows tech platforms to aggregate and distribute news content without adequately compensating the original creators.
• The goal is to rectify the imbalance and ensure news publishers receive their rightful share of revenue.

How did platforms respond elsewhere?

• In Australia, Facebook and Google temporarily blocked news links in February 2021 as a response to the News Media and Digital Platforms Mandatory Bargaining Code.
• Both companies eventually made revenue-sharing deals with Australian publishers, contributing around 200 million Australian dollars annually.
• France’s Competition Authority (FCA) negotiated deals with Google for fair revenue-sharing with news platforms.

What steps has India taken towards fair revenue-sharing?

• The Competition Commission of India (CCI) is examining unfair conduct and revenue-sharing agreements between tech platforms and news publishers.
• The Digital News Publishers Association (DNPA), News Broadcasters and Digital Association (NBDA), and the Indian Newspaper Society (INS) have approached CCI to address these concerns.

Why is fair revenue-sharing crucial for India’s digital ecosystem?

• India’s digital market is rapidly expanding, and both tech giants and news publishers play vital roles in this growth.
• Ensuring a fair split of revenue encourages sustainable growth of the internet economy and supports the news industry’s credibility and sustainability.