Canadian news publishers and broadcasters, represented by News Media Canada, the Canadian Association of Broadcasters, and CBC/Radio-Canada, have filed an application with the Competition Bureau of Canada. They request an investigation into Meta’s conduct concerning the implementation of the Online News Act.
The complaint arises from Meta’s recent decision to block news content from its platforms in Canada, provoking concerns about the company’s dominant role in the online advertising market.
The applicants argue that Meta, the parent company of Facebook and Instagram, has exploited its significant position in the social media market in reaction to the enactment of the Online News Act. This Act requires powerful tech companies, including Google and Meta, to pay news outlets for sharing links to their pages.
The legislation aims to support Canada’s news industry by necessitating digital platforms like Meta to financially recompense news organizations for their content’s usage. In response, Meta stated it would halt the distribution of news content on its platforms in Canada.
The plaintiffs contend that this equates to anti-competitive behaviour intended to harm Canadian news organizations’ capacity to compete effectively in both the news publishing and online advertising markets.
The complaint alleges that Meta aims to penalize news companies, diminish their visibility, and gain an advantage in negotiations by blocking Canadian news content – thereby strengthening its already dominant stance in the online advertising realm. If successful, the complaint could lead to an investigation resulting in a mandate from the Competition Bureau that would forbid Meta’s news blocking as market dominance abuse under Section 79 of the Competition Act.
The heads of the National Association of Broadcasters and the Canadian Association of Broadcasters condemned Meta’s decision to restrict access to news on its platforms in Canada. They jointly described Meta’s “retaliatory tactics” as displaying “monopolistic dominance” over online advertising, in a statement. They called on lawmakers to reject Meta’s “coercive behavior” and champion legislation that allows fair negotiations over the use of news content on prominent platforms.