Meta Rejects Canada’s Peace Offering Over Online News Fight

Canadian has unsuccessfully tried to end a standoff with Meta over a new law that forces tech companies to pay news organizations, promising the Facebook parent company it would need to contribute a relatively small amount of its annual revenue. Meta rejected the proposal as it continues to block news links and stories in Canada. 

New draft language for Canada’s Online News Act was published Friday shows the legislation asking Meta and other companies like Alphabet to pay news outlets a minimum of 4% of their annual sales from Canada—which would amount to less than $100 million for Meta. Last year, Meta had $116 billion in total revenue. 

Social media sites and search engines have become a key avenue for Canadians and other internet users around the world to access news. But while the companies behind those sites have prospered in recent decades, news businesses have profoundly struggled. In 2021, for instance, 79% of all advertising revenue in Canada—some $12.3 billion—went to Meta and Google, according to Canadian government estimates. 

Spokespeople for Google and Meta did not immediately reply to a request for comment.

Meta’s refusal to allow news content even amid widespread wildfires drew condemnation from President Justin Trudeau in August; he accused the company of putting “corporate profits ahead of people's safety.”
The publication of the proposed regulations kicks off a 30-day consultation period that calls for public feedback. Minister of Canadian Heritage Pascale St-Onge sounded an optimistic note, saying in a press release that she is looking forward to “engaging with platforms in a constructive way” during the consultation process.