Torstar to Pause Advertising on Facebook, Instagram as Media Clash Plays Out
07 July 2023 - 7:59AM
Dow Jones News
By Denny Jacob
Torstar, owner of the Toronto Star and Metroland Media Group,
said it would pause all advertising on Facebook and Instagram in
response to their owner Meta Platforms' threat to ban access to
news reports on its platform for Canadian users.
The news and media company said Meta's intention would block
access to news from its publications.
"We vigorously object to Meta's unprecedented plans to block our
content on its platforms in protest against the federal
government's Online News Act," said Chief Executive Neil
Oliver.
The decision is the latest development to stem from the battle
between Canada's Liberal government and big digital platforms, most
notably Meta and Alphabet-unit Google. Canada said Tuesday it would
pull advertising on Meta's social media platforms.
Canada's parliament approved legislation about two weeks ago to
compel digital platforms to compensate domestic media outlets for
links to their articles. The law aims to provide media outlets with
a financial lifeline to offset the loss of advertising revenue that
has migrated to the digital sphere. If negotiations fail, the law
calls for the two sides to enter binding arbitration to determine
appropriate compensation.
Meta and Google have argued the law would put a price on free
links to webpages, which contravenes copyright legislation and
upends the concept of an open internet where users can search and
connect to material without restrictions.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
July 06, 2023 17:44 ET (21:44 GMT)
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