Canada’s decision to suspend advertising on Facebook and Instagram amid tense negotiations with tech giants Meta and Alphabet could impact the reach of national arts and cultural institutions. Last month, the Canadian government adopted the C-18 Online News Act, to be implemented by the end of the year. The law will require the parent companies of Facebook and Google to share a portion of advertising revenue with local media.
“Canada will continue to stand firm and ensure that if social media platforms and internet giants want to use the media, they actually make sure they pay their fair share,” Prime Minister Justin Trudeau said earlier this month in Montérégie, Quebec, according to Reuters.
Hugo Couturier, director of communications and partnerships for the Conseil des arts de Montréal, said Hyperallergic that the organization has suspended its advertising on all Meta platforms. The agency provides funding and support for artistic programs and events in Montreal. Couturier added that the advertising shutdown was initiated on July 6 and will continue indefinitely in solidarity with all media.
“Like other levels of government and public authorities, such as the City of Montreal, we believe that we must demonstrate our collective will, as the Canadian government is proposing with Bill C-18, to distribute more equitably the revenues generated by journalistic content on social networks,” said Mr. Couturier.
“In a democracy like ours, credible and plural media voices offering relevant and in-depth content are priceless. And this is fundamental for the deepening and recognition of the work of artists,” continues Couturier.
But not everyone agrees that boycotting Facebook is the right decision. Last week, a motion to suspend uncritical ad campaigns on Meta platforms failed to pass Ottawa City Council by a single vote. Dan Chénier, general manager of the city’s recreation, culture and facilities department, said advertising can be a lifeline for arts venues like theaters, where “using Facebook to promote things that sell less…shows immediate and very positive results,” he said. CTV News.
At a press conference in early July, Canadian Heritage Minister Pablo Rodriguez stressed that the government’s goal is both to stimulate Canada’s information economy while promoting journalistic regulation, believing that C-18 will bring $329.2 million to the Canadian information industry. State governments around the world have attempted to implement similar regulations on social media companies, including Australia, where a a partial agreement has been concluded with Facebook in 2021. In CaliforniaAssembly Bill 886, introduced this year, would require Google and Facebook to pay for news shared on their platforms.
“The status quo doesn’t work,” Rodriguez told the conference. “All Canadians want is for these platforms to do their fair share — no more, no less, just what’s right.
C-18 follows another bill targeting tech titans that could potentially affect Canadian movie makers. C-11, otherwise known as the Online Streaming Act, became law in April, requiring streaming services including Disney+, Netflix and Amazon Prime to share their platforms with Canadian content and provide annual grants to local media. The law imposes regulations similar to those that already oversee the country’s television networks.
In an Ottawa joint press conference with Peter Julian of the New Democratic Party (NDP) and Martin Champoux of the Bloc Québécois on Wednesday, July 5, the Minister of Heritage noted that close to 500 local news outlets including radio stations, newspapers and TV stations have closed in recent years, which he says puts journalistic integrity and Canadian democracy as a whole at risk. Meanwhile, he also denounced the fact that 80% of all 2022 Canadian media ad revenue went to both Meta and Alphabet, totaling nearly C$10 billion (~$7.5 billion).
In response to the death of C-18, Meta and Alphabet threatened to cut off access to news for Canadian users on Facebook, Instagram and Google. Meta released a statement in early June confirming that the platform will end all news available on Facebook and Instagram to Canadian users before the law takes effect. On June 29, Google and Alphabet President of Global Affairs Kent Walker called C-18 “unenforceable” and announced the “a bad newthat the Internet search engine will “remove links to Canadian news from our Search, News and Discover products in Canada” later this year. In 2022, the majority of Alphabet members $60 billion in profits came from advertising.
The two tech giants’ decisions sparked the government’s latest call to suspend its ads on Meta’s two platforms – a move that would cost Facebook’s parent company millions in ad revenue, Policy reports.
Rodriguez called Meta’s decision to block access to information “unreasonable” and “irresponsible,” but added that he hopes the company will continue to negotiate with the government to find a way forward.
“The reality is that the web giants have to respect Canadian law, they have to respect Canadian democracy, and that’s the profound message we’re sending to Meta and Google today,” Julian told reporters.
