Canada passes bill requiring tech giants to pay for news

The Canadian Parliament passed a law mandating large technology companies such as Meta and Google to compensate domestic news outlets for linking their articles. In response, Meta announced it would remove news articles from its digital platforms in the country.

On Thursday, the Canadian Senate approved the "Online News Act,” which will require major tech companies to establish usage fee agreements with local media outlets for linking their news articles on digital platforms. The act aims to support the struggling journalism industry in the country. It is currently awaiting approval from the country's Prime Minister before taking effect. The Canadian government revealed that some 450 domestic news agencies had closed between 2008 and 2021.

Upon the passage, Meta stated that news availability on Facebook and Instagram for all users in Canada would end prior to the Online News Act taking effect. A Google spokesperson expressed urgency in working with the government, without specifying details. If the act becomes law, Meta and Google would be required to pay approximately 300 million Canadian dollars (approximately 300 billion Korean won) annually to support local media outlets in Canada.

A law similar to the Canadian Act was enacted in Australia in 2021, leading Meta to suspend its news services for over a week. Eventually, Meta and Google agreed with the Australian government to pay local media companies usage fees totaling approximately 200 million Australian dollars (around 175 billion Korean won) with a one-year grace period.

The California Assembly also approved the "Journalism Preservation Act" on June 1, mandating social media companies with specific sales revenues and user reach to share their advertising earnings with news organizations that produce content shared on their digital platforms. The bill will now progress to the Senate and subsequently to the Governor's office for signature.


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