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Dec 19, 2023 5:58 PM - Connect News

The Online News Act came into force from today, the media industry will get help

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According to the government, online advertising revenue in Canada was $14 billion in 2022, with two major platforms receiving nearly 80 percent of that.

The government's controversial Online News Act has come into effect from December 19, i.e. today, amid a ban on news by Facebook and Instagram's parent company Meta in Canada. The law mandates that tech companies pay news outlets in exchange for local news.

The legislation is supposed to help Canada's struggling journalism industry as digital platforms have been earning the bulk of online advertising until now and many local news outlets are closing each year due to advertising losses.

According to the government, online advertising revenue in Canada was $14 billion in 2022, with two major platforms receiving nearly 80 percent of that. While Google has agreed to give the news outlet a fixed share each year under a deal with the government, Meta has maintained a ban on news for Canadians on Facebook and Instagram.

Notably, Canada's Online News Act came into effect 180 days after receiving Royal Assent. It received royal assent on June 22, 2023.

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