The federal government of Canada has declared that it will stop running any advertisements on Facebook and Instagram.
Following the passage of a law requiring tech companies to pay media outlets for news, parent company Meta restricted access to news content for Canadians.
On Wednesday, Canadian officials declared that they would uphold the law and would not be intimidated by Meta.
They claimed that they had discussions with other nations who intended to enact similar legislation.
In response to the Online News Act, also known as Bill C-18, which goes into effect in about six months, Google has also declared plans to obstruct Canadian news in the nation.
However, Canadian officials expressed optimism that they can reach an agreement with Alphabet, the parent company of Google, to stop the block from taking place.
At a news conference on Wednesday, Minister of Heritage Pablo Rodriguez stated that the regulations we plan to implement will address Google's concerns.
However, Mr. Rodriguez claimed that Meta has not been collaborating with the government on a course of action in the same way.
He claimed that Meta "aren't talking to us" and that their choice to obstruct news for Canadians was "unreasonable and irresponsible.".
According to Mr. Rodriguez, the tech giant will lose $10 million ($7.54 million; £5.93 million) in revenue as a result of Canada's decision to stop all advertising on Meta's platform.
He did not specify whether the advertising pull would apply to Threads, a new platform from Meta that will compete with Twitter and launch on Thursday. However, Mr. Rodriguez noted that in theory, all platforms run by the parent company would be affected by Canada's action.
For Meta, whose annual revenue in 2022 was over $116 billion, the loss of government advertising represents a drop in the ocean. However, Mr. Rodriguez asserted that Canada is determined to make it clear that it won't be intimidated.
He added that he hopes it will motivate other businesses, including Canadian ones, to follow suit. Both Quebec-based media companies Quebecor and Cogeco announced they would stop running advertisements on Meta.
Bill C-18, according to Meta, "is flawed legislation that ignores the realities of how our platforms work," in a statement to the BBC.
According to the business, "Publishers actively choose to post on Facebook and Instagram because it benefits them to do so.".
According to the federal government, the bill is required to "secure fair compensation" for news and links shared on tech platforms by struggling news organizations.
In 2021, Australia passed a law very similar to Bill C-18, but it was modified after Meta temporarily barred Australian users from sharing or viewing news on its platform.
The blackout was over once the changes were made, and Google and Meta have since talked with Australian media companies about more than 30 deals.
Canada, according to Prime Minister Justin Trudeau, has evolved into a global test case for legislation like Bill C-18, he said on Wednesday.
Mr. Trudeau said of tech behemoths like Meta, "This is what they want to do, make an example of us.
Facebook determined that Canada is a small enough nation to be able to reject our requests, the man said. When they decided to attack Canada, they made the incorrect decision. " .
According to Mr. Rodriguez, Brazil, Indonesia, and the UK are among the nations looking to adopt laws similar to Canada's.
Some US senators and commentators have also expressed support for Canada.
In a column published in the Los Angeles Times on Wednesday, columnist Brian Merchant wrote, "Canada must under no circumstances give in to the tantrum of the tech giants.".
Senator Amy Klobuchar of the US Democratic Party, who is spearheading the effort to pass a comparable bill in Washington, DC, has also endorsed Canada's law.
In tests, Meta has already started limiting access to news to a small subset of Canadians, and it has stated that it plans to enact a complete blackout in the upcoming weeks.
When attempting to view news content on Instagram, some users have reported seeing a message that reads "In response to Canadian government legislation, news content can't be viewed in Canada."