As Meta news block takes its toll, local media not unified on a path forward

Though Meta's block of news availability on the socialmedia giant'splatformsis already taking its toll on web traffic to newssites, local media outlets aren't united on a path forward.

Just over two weeks ago, Meta which owns Facebook and Instagram beganending the availability of news on those sites in Canadain response to the passage of Bill C-18, the Online News Act,which takes effect by the end of thisyear.

Paul MacNeillof Island Press Limited, which publishes several weekly community papers in Prince Edward Island, andJeff Elgie, whose companyVillage Mediapublishes around 21 community news websites in Ontario, both spoke on CBC's The House, which aired Saturday.

MacNeill, publisher of Island Press,told guest host Tom Parry thathis company's web traffic has been down by around a quarter since the start of the Meta block.

Elgiesaid heexpectsVillage Media traffic to declineby around 15 per cent.

MacNeill, whose papers still have a robust print subscriber base, said the main drawback of decreased traffic was the chance to amplify his publications'work beyond their rural P.E.I.base.

Elgie said the bill would severely hamper any chance of future growth.

"What this bill has done iswe've put a halt on any new market expansions and hiring more journalists in those markets," Elgie said.

LISTEN | P.E.I., Ontariomedia groups and digital policy analystspeak on CBC's The House about Meta news blocking:

The House6:42Meta news block starts to bite

Social media giant Meta has made good on its promise to start blocking news content on its popular Facebook and Instagram social media platforms. Guest host Tom Parry talks to two local news publishers Island Press Limiteds Paul MacNeill in PEI and Jeff Elgie of Village Media in Sault Ste. Marie, Ontario and to digital policy expert Sue Gardner about how the ongoing clash between the federal government and Meta will play out.

Elgieand MacNeill, though both operating in the local news industry, expressed widelydifferent positions onC-18, which is meant to force Meta and Google to enter into agreements to compensate news agencies for content that appears on their platforms.

"I hate it," Elgiesaid.

The government says C-18is about ensuring tech companies pay their "fair share" to media organizations. Meta hascountered that the only reasonable way to comply with the bill is to end news access in Canada.

CBChas joined two other groups in asking the Competition Bureau to investigate Meta's news blocking.

"I don't object tothe notion thatGoogle and Facebook should support journalism," Elgie said. "But the premise of C-18, what we said, which is basically, 'They steal our content, they're immoral, they don't do anything for the publishing industry,'is all false."

WATCH | Meta begins process to end news access in Canada on its platforms:

Meta moves to block news on Facebook and Instagram in Canada

1 year ago

Duration 2:34

Meta, the owner of Facebook and Instagram, says it is going ahead with a plan to remove news content from its platforms in Canada. It signalled the move was coming when the government passed Bill C-18, known as the Online News Act.

Elgie's argument is that the transfer of value between social media sites and news outlets actually flows the opposite way: media sites benefit from free traffic and amplification when their content is posted on tech platforms.

"To me, really the goal right now is to get Meta back to the table, because my fear is the longer they're out, the easier it will be for them to stay out permanently," he added.

MacNeill,though, gives Meta less credit for its role in the media ecosystem.

"I think it's the bully on the playground, isn't it? ...I think there's a place for everyone on the playground, but walking away and basically sulking isn't going to solve any issues," he said on The House.

"We do need legislation like C-18, there's no question, because if you're a small operator, even a modest amount of money can mean the difference between ... surviving or not."

The standoff between the federal government and Meta has dragged on for much longer than the temporary block that the company put in place in Australia in 2021, after that country passed a similar law.

C-18 called an 'epic miscalculation'

That's no coincidence, said Sue Gardner, a digital policy analyst.

"Since then, they've had a couple years to think about it," Gardner,who used to run CBC's digital site and the organization that operates Wikipedia,said onThe House."They've had a couple of years to sort of look at their operations and see what kind of role news plays in it.

"And they've had a couple of years to imagine what happens if this kind of law comes into effect all around the world. It's one thing to pay out a couple $100 million in Australia. It would be something very different to pay out many, many multiples of that in countries around the world."

Gardner dubbed C-18 an "epic miscalculation" by the government, saying she was concerned the bill is "not going to help the country. It's actually going to make things worse for the news industry and for news audiences."

The government has positioned itself as a global leader on the issue, saying in a statement, "The world is watching Canada."

But Gardner warned that Canada might find itself as a cautionary tale, rather than a trailblazer.

"Other countries are watching what is happening in Canada, but rather than considering Canada to be a role model that they might follow, I think it's encouraging them ... to step back and maybe take a different approach."

For MacNeill, however, the short-term pain is still worth it for what he believes will be a healthier media ecosystem.

"You know, democracy trickles uphill. And when local media are closed, or shuttered or stripped of assets, which has unfortunately been a model by large corporations in this country, the oversight of communities across this country is diminished, and that hurts."