Canadian government decision on ads on Facebook, Instagram

Canada’s government have made a decision that it will stop buying ads on Facebook and Instagram. Heritage Minister Pablo Rodriguez announced it on date: 7/7/2023 as a feud heats up with tech giants over a new media compensation law.
The Online News Act, adopted by parliament last month, requires digital giants like Google and Meta to make commercial deals to compensate Canadian news outlets when users access articles through their products, or face binding arbitration.
Meta, the parent company of Facebook and Instagram, announced soon after the bill passed that it would take measures to block Canadian news for users on its platforms in the country.
Rodriguez described those actions as unreasonable and irresponsible. “This is why today we are announcing that the government of Canada will be suspending its advertising on Facebook and Instagram,” he said, estimating the cost to Facebook and Instagram at around Can$10 million ($7.5 million) a year.

Google has also announced it will take similar actions to resist the law.

The two companies, who dominate online advertising, have been accused of draining cash away from traditional news organisations while using their content for free.
“Canadians are not going to be intimidated by American billionaires who want to undermine our democracy,” said Prime Minister Justin Trudeau, adding that his government would not back down from its decision.
According to the Department of Canadian Heritage, more than 450 Canadian media outlets have closed their doors since 2008.
An October 2022 report by Canada’s parliamentary budget watchdog estimated the Online News Act would see Canadian newspapers receive about Can$330 million per year from digital platforms.