Proactive Investors - Facebook (NASDAQ:META) and Instagram owner Meta Platforms Inc (NASDAQ:FB) has begun blocking news stories from its platforms in Canada as a spat over new laws requiring sites to pay publishers rumbles on.
“In order to comply with the Online News Act, we have begun the process of ending news availability in Canada,” Meta said on Tuesday.
Tech companies will be required to negotiate with and pay media companies under the act, in a bid by the Canadian government to ensure benefits from work being shared on social media sites are shared.
Meta has slammed the move though, arguing it does not unfairly benefit from other’s material given most people don’t go on the likes of Instagram and Facebook for news.
However, the government responded in full force, slating Mark Zuckerberg’s company for choosing to block users from “good quality and local” news instead of paying the producers their “fair share”.
“We’re going to keep standing our ground,” heritage minister Pascale St-Onge added, “after all, if the government can’t stand up for Canadians against tech giants, who will?”