Categories: Business

Ottawa freezes advertising on Facebook, Instagram over Bill C-18 standoff

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Attendees visit the Meta booth at the Game Developers Conference 2023 in San Francisco on March 22Jeff Chiu/The Associated Press

The federal government has suspended all advertising on Meta’s platforms — including Facebook and Instagram — because of the company’s plans to block Canadian news on its platforms in response to Ottawa’s Online News Act.

The decision was announced shortly after Quebecor Inc. said it stopped advertising on Meta for the same reason.

Canadian Heritage Minister Pablo Rodriguez announced the decision Wednesday at a press conference in Ottawa with NDP heritage critic Peter Julian and Bloc Québécois heritage critic Martin Champoux.

Parliament approved the act, known as Bill C-18, last month and the measures are set to take effect within six months after the regulatory details are drafted. The legislation outlines a framework in which the major platforms – especially Google and Facebook – are required to reach compensation agreements with publishers for the use of news on their sites.

Both companies say the bill as approved is unworkable. Google announced on June 29 that it intends to block Canadian news on its platform, but continues to participate in the regulatory process.

Meta previously said it would block access to Canadian news and the Minister said the company has expressed no interest in seeking a solution through regulations.

Explainer: What to know about Bill C-18, the new law that will affect how you get news in Canada

Mr. Rodriguez said the federal government currently spends about $10-million a year on advertising on Meta platforms.

While Mr. Rodriguez spoke positively of Quebecor’s decision to also stop advertising on Meta, he declined to say whether the Liberal Party would follow the government’s move.

Facebook advertising is a key element of modern political campaigns, in part because parties can target messages to specific demographics.

Parker Lund, a spokesperson for the Liberal Party, told The Globe Wednesday that the party has not changed its policy.

“We will continue to advertise on Meta platforms,” ​​he said.

More to come

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