Major Woes For Meta As Canada Bars All Ad Spending On Facebook And Instagram

Canada has given tech giant Meta a taste of its own medicine after choosing to ban advertising across both its Facebook and Instagram platforms.

The country’s government made the bold decision today where it says no more ad spending, which entails a whopping figure of $7.5 million each year, would be allotted to the apps for the sake of ads.

The decision seems to be a part of the repercussions that Meta took on itself when it chose to bar all news from Canada as a means of showcasing its disapproval of a rule that forced tech giants like Google and itself to pay publishers for adding links to content that they were in the ownership of.

Government officials from Canada released a statement on the matter today where it revealed that this was a necessary measure that had to be taken because of the way Facebook’s parent firm was behaving in the stance it had opted to take.

The nation’s heritage minister added that there is no point in spending millions of dollars on a firm who are in denial when it comes to paying a fair sum to media outlets of the country that own the articles to which they add links.

Let’s not forget how the rule was in line with the country’s Online News Act that came into effect in June. right now, the country says it’s almost being passed into law in the form of a bill and that means all tech companies need to abide by it. So Meta must share its sum of revenue attained before the bill gets passed soon, where the estimated data is the end of 2023.

The bill further shed light on how tech firms like Google and Meta are making a whopping 80% revenue from digital ads throughout the country. This entails dollars gained from ads that need to be shared with respective Canadian news sources.

But when we saw Google and Meta agree to disapprove the country’s own bill, they even barred news from Canada from coming on their apps. So you’d find no Canadian-sourced information on the platforms.

Despite these changes, Canada says that it’s still open to negotiations because it is not wrong and what Meta is doing is unfair.

On Wednesday, the country’s Prime Minister was questioned about the serious matter and he boldly delineated how Canada would not back down as it was not only linked to advertising and instead, had so much more included.

He further spoke about it having to do with democracy as the society deserved the right to information that was not only free but well-informed.

For now, Facebook’s parent firm is yet to provide any more details on the matter. But it did reveal bluntly that news-related content in a country like Canada doesn’t value too much to the firm when we consider things from an economic perspective.

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