Canada will no longer spend money on Facebook and Instagram ads

The Canadian government will stop spending around CAD 10 million (almost Rs. 62 crore) per year on Facebook and Instagram advertisements due to a disagreement over a new rule on paying online news writers, which Meta-owned platforms have resisted, Heritage Minister Pablo Rodriguez announced on Wednesday.

Rodriguez told reporters in Ottawa that the government still sees a way ahead in settling the dispute that has prompted Meta and Alphabet's Google to warn they will terminate news access on their platforms in Canada.

Google and Meta revealed their plans following the passage of Bill C-18, often known as the Online News Act, last month. The government is finalising guidelines that would force platforms to split some advertising money before the bill goes into effect at the end of this year.

"We cannot continue paying Meta advertising dollars while they refuse to pay their fair share to Canadian news organisations," Rodriguez stated.

The measure was devised in response to requests from Canada's media sector for stronger control of internet behemoths in order for news organisations to recoup financial losses sustained during the years when Facebook and Google obtained a larger portion of the online advertising market.

"We believe we have a path forward, and we're willing to continue talking with the platforms," said Rodriguez, who sponsored the measure last year.

Meta did not respond right away. It has previously stated that journalism has no monetary value for the corporation and that news organisations gain from publishing their items on Facebook.

Quebecor and Cogeco, which owns radio stations in Quebec, both said on Wednesday that they will cease advertising on Facebook and Instagram due to Meta's objection to the new rule.