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July 7, 2023

Canada cuts ties with Facebook and Instagram over news dispute

Canada to withdraw all government ads from Facebook and Instagram, amid escalating tensions

Meta's restrictions on news content in Canada have sparked a battle with Canadian officials who stand firmly behind the law requiring tech firms to pay for news. Google has also announced plans to block Canadian news in response to the upcoming Online News Act. However, Canadian officials remain hopeful about negotiating a deal with Google's parent company, Alphabet, to avoid the block. The clash reflects a broader trend as other countries consider similar laws. The outcome will shape the future of news distribution and the relationship between tech giants and media organizations.

As tensions rise between Meta and the Canadian government, Minister of Heritage Pablo Rodriguez accuses the tech giant of lacking engagement in finding a way forward. With Canada's decision to withdraw all advertising from Meta's platform estimated to cost the company millions, the government's actions aim to send a clear message of resilience.

The repercussions for Meta are significant as Canada's advertising pull serves as a testament to their determination. While the loss in revenue may seem minimal for the tech giant, Canada's stance is intended to inspire others to follow suit. Media firms, including Quebecor and Cogeco, align with the government's stance, while US Senator Amy Klobuchar supports Canada's efforts with a similar bill in Washington DC. As Meta proceeds with its plans to restrict news access, the stage is set for a battle that will shape the future relationship between tech companies and the media landscape.

Josefina Dipaolo
Josefina Dipaolo
Content Writer at TechNews180
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