Federal government has suspended its advertising on Facebook, Instagram, says heritage minister

Heritage Minister Pablo Rodriguez says the federal government has suspended all of its advertising on Facebook and Instagram as it continues its battle over the Online News Act with tech giants Google and Meta.

"Facebook has decided to be unreasonable, irresponsible and started blocking news," Rodriguez said Wednesday ata joint press conference with the NDP's Peter Julian and the Bloc Qubcois' Martin Champoux. "This is why today we are announcing the Government of Canada will be suspending advertising on Facebook and Instagram.

"Google, on the other hand, has been open to finding a solution."

The federal government's Online News Act, C-18, became law on June 22. It compels companies like Google and Meta, Facebook and Instagram's parent company, to pay money to news organizations each time a user accesses a web story through a link on one of their products.

The bill has been pitched as a way to keep news outlets solvent after advertising moved en masse to digital platforms, virtually wiping out a major revenue stream for journalism.

"Meta's decision to block news content in Canada is disappointing. It is disappointing and irresponsible," Champoux said Wednesday. "Google's threat to do the same is concerning."

Champoux said that, instead of viewingC-18 as an obstacle to profit, tech giants should see itas an opportunity to show that they care about democracy by backing a free, objective pressand combating misinformation.

"The companies that do business here must respect our values and comply with our laws," Champoux said. "C-18 is a necessary tool."

Julian said that as local media outlets continue to close, and as larger oneslay off staff, the Online News Act is neededto preserve democracy in Canada.

"We are telling Meta and Google that they must respect Canadian laws and Canadian democracy," he said.

"Today we have parliamentarians representing two-thirds of the House of Commons saying very clearly that the web giants have profited enormously from Canada and now its time to give back some of those funds."

Google remains in talks: Rodriguez

Rodriguez saidhe is still having conversations with Google and is confident that a deal can be struck.

"What's clear on our side is that solutions can only come around the table," he said. "It's also clear that Google's concerns can be met by what we plan to do in the regulations.

"Meta, on the other side, is not talking to us unless they called this morning so they took a different approach. I don't think it's good for anyone. Not for them, not the government, not for Canadians, for anyone."

A Meta spokespersonsaid in a media statement Wednesday that the Online News Act is "flawed legislation" that ignores the realities of how the company's platforms work.

"Unfortunately, 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," she said.

Rodriguez said the Online News Act is only asking companies to pay a "fair" price for links to content.

Watch:Heritage minister calls on Meta, Google to 'stay at the table' in C-18 talks:

Heritage minister calls on Meta, Google to 'stay at the table' in C-18 talks

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Duration 0:49

Heritage Minister Pablo Rodriguez says the government will no longer be publishing ads on Facebook and Instagram.

Telecom and media firm Quebecor said Wednesday it will pull its ads from Facebook and Instagram in response to Meta's decision to blockaccess to news in Canada on itssocial media platforms. CBC/Radio-Canada also announced Wednesday it would be pulling its advertising from Meta.

"We join other Canadian media organizations that are calling for Canadians' access to news all news, from all outlets, both public and private to be protected," a statement from CBC/Radio-Canadasaid.

News Media Canada, which advocates for the print and digital media industry in Canada, welcomed the decision by the federal government and Quebecor and told CBC News.

"We encourage all municipal and provincial governments across Canada to do the same," the group said in a statement.

"Large corporate advertisers, like the banks, telcos, retailers and auto companies, should make a similarly strong statement to Meta. It's time for those who value a free press to stand up and be counted."

Liberal, NDP parties will continue Meta ads

While the federal government is suspending ads on Meta platforms, the Liberal Party of Canada and the NDP have confirmed theywill continue to advertise there.

The Bloc told CBC News that it stopped advertising on Meta platforms on June 29.

On Wednesday, Quebec Premier Franois Legault announced on Twitter that the Quebec government also wouldstop advertising withMeta.

"No business is above the law," Legault said.

Speaking inSaint-Hyacinthe, Que. later in the day, Prime Minister Justin Trudeau said he expects more governments and companies will stop advertising with Meta in the coming days.

WATCH |Trudeau says government 'will not flinch' in dispute with tech giants:

Trudeau says government 'will not flinch' in dispute with tech giants

1 year ago

Duration 1:50

Prime Minister Justin Trudeau says the confrontation with Facebook and Google over C-18 amounts to a 'dispute over democracy.'

"We are not backing down on this. This goes to the core of a free and informed society that is able to make decisions in a democracy," he said.

"Canada and allies around the world are going to stand strong and demonstrate that we will not flinch in our defence of fundamental, foundational principles of democracylike a free, quality, informed press."

During the 2021-2022fiscal year, the federal government spent $140.76 million on advertising. Social media companies such Meta, Twitter, Snapchat, TikTok LinkedIn and Pinterest got $21,205,519 of that. Meta's share was $11,423,728.

Over the same time period, the federal government spent $8,757,234 advertising through Google and another $1,147,062 on Bing ads.

C-18 amounts to censorship: Conservatives

The Conservatives voted against C-18 and party leader Pierre Poilievre vowedin a tweet to"repeal [Prime Minister Justin] Trudeau's censorship laws."

Conservative Heritage critic Rachael Thomas issued a statement Wednesdaycalling C-18 a censorship law that limits what Canadians can see online.

"Common sense Conservatives submitted changes to fix flaws in Bill C-18 but the NDP-Liberal coalition blocked them. A Poilievre government will replace Bill C-18 and bring home freedom and choice for Canadians," she said.

Google and Meta also did not offer comment for this story. In the past, both companies have called the legislation unworkable.

Google has comparedthe exposure it provides through its search engine to a free newsstand service for media outlets. Meta has said it sees noroom for negotiation with the government, given the way the law was written.

Google has said it looksforward to taking part in the regulatory process.

As a news organization, the CBC could see a financial benefit under C-18, which requires the CBC to provide an annual report on any compensation for news it receives from digital operators.