The head of the Center for Journalism and Liberty says pulling ads from Facebook could push Meta toward inking deals with news outlets.
Courtney Radsch, director of the Washington, D.C.-based think tank, says the tactic adopted by several governments and companies in Canada this week might force the social media giant's hand — if other countries and corporations follow suit in larger markets.
The federal government along with the province of Quebec, the City of Montreal and Quebecor Inc. said yesterday they would suspend advertising on Facebook and Instagram as tensions with tech titans rise over the Online News Act, also known as Bill C-18.
The bill, passed last month but not set to take effect until late December, forces digital giants to pay media outlets for content they share or repurpose on their platforms.
The $10 million a year that Canada's heritage minister says it spends on advertising with Facebook and Instagram amounts to a tiny fraction of Meta's US$113 billion in ad revenue last year.
Nonetheless, Radsch says Meta may have to reconsider its strategy if larger companies as well as governments that are crafting similar legislation — such as the United States, United Kingdom and Brazil — follow Canada's lead.
This report by The Canadian Press was first published July 6, 2023.
Companies in this story: (TSX:QBR.B)
The Canadian Press
