Canada residents will not be able to access news on Facebook, Instagram

Instagram and Facebook users in Canada will not be able to view news as Meta has decided to impose restrictions on news feeds in the country because of a bill. Canada has passed a bill requiring internet giants to pay news publishers.

Meta Platforms, the parent company of Facebook and Instagram said it will block access to news for all users in Canada once a parliament-approved legislation.

The legislation, known as the Online News Act was proposed after complaints from Canada's media industry which wants tighter regulation of tech companies to prevent them from elbowing news businesses out of the online advertising market.

The legislation aims to support a struggling Canadian news sector that has seen hundreds of publications closed in the last decade.

The federal government introduced Bill C-18 in April 2022 intending to force digital giants, such as Meta and Google, to compensate news publishers for the use of their content. The bill was pitched as a way to support an industry that has seen a steady decline since the emergence of the Internet.

According to the government, more than 470 media outlets in Canada have closed since 2008. Moreover, one-third of journalism jobs disappeared over that same time.

Bill C-18 is modelled on Australia's stringent rules against tech companies. Australia became the first country that forced digital companies to pay for the use of news content.

Australia's New Media Bargaining Code aimed at making Google and Meta pay for news content on their platforms.

The country had accused the two companies, who dominate online advertising, of draining cash away from traditional news organizations while using their content for free.

The Canadian government had asked tech companies that the compensation amount to the news publishers would be used to fund the creation of more news content.

Earlier Facebook categorically said news has no economic value to the company and that its users do not use the platform for news.

Google and Facebook had also threatened to curtail their services in Australia when similar rules were passed into law. Both eventually struck deals with Australian media companies after amendments to the legislation were offered.