Ottawa (AP): Canada's government has announced it would stop advertising on Facebook and Instagram, in response to Meta's decision to block access to news content on their social platforms as part of a temporary test.

Heritage Minister Pablo Rodriguez announced Prime Minister Justin Trudeau's government's decision at a news conference on Wednesday.

Canada's move is the latest episode in a spat that started after Trudeau's administration proposed a bill that would require technology companies to pay publishers for linking to or otherwise repurposing their content online.

Meta promised at the time to block Canadian news content on its Facebook and Instagram platforms to address Canada's recently passed Online News Act.

Rodriguez said the decision from Meta is "unreasonable" and "irresponsible", and as a result Canada would stop advertising on their platforms.

Reacting to the latest Canadian announcement, a Meta spokesperson said Wednesday that the Online News Act is a "flawed legislation that ignores the realities of how our platforms work", and that the company does not collect links to news content to show on their social platforms. He said publishers are the ones deciding to post them on Facebook or Instagram.

"Unfortunately, the regulatory process is not equipped to make changes to the fundamental features of the legislation that have always been problematic, and so we plan to comply by ending news availability in Canada in the coming weeks," said the spokesperson on a statement sent to The Associated Press.

The annual report on government spending shows the federal government spent just over 11.4 million Canadian dollars (around USD 8.6 million) advertising on Facebook and Instagram in 2021-2022.

Google has also promised to start blocking Canadian news when the bill takes effect in six months.

Rodriguez said the government is in talks with the company and believes their concerns will be managed by the regulations that will come to implement the bill.

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Bengaluru, Sep 11: Karnataka Chief Minister Siddaramaiah on Wednesday said he has written to the Chief Ministers of eight states regarding the "unfair" devolution of taxes by the Union government, and has invited them to a conclave in Bengaluru to collectively deliberate on the issues of "fiscal federalism".

He said he has written to the Chief Ministers of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Haryana, and Punjab.

"States with higher GSDP (Gross State Domestic Product) per capita, like Karnataka and others, are being penalised for their economic performance, receiving disproportionately lower tax allocations. This unjust approach undermines the spirit of cooperative federalism and threatens the financial autonomy of progressive states," he said in a post on 'X' with "#OurTaxOurRight" hashtag.

"I have invited them to a conclave in Bengaluru to collectively deliberate on the issues of fiscal federalism at a juncture when the Finance Commission needs to make a directional shift & create incentives for growth and better tax mobilisation," he said.

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Siddararamaiah has also posted the letter written to CMs of other states on 'X'.

"As you are aware the 16th Finance Commission has begun its deliberations. The previous Finance Commissions have laid excessive emphasis on equity at the cost of efficiency and performance. As a result, states with higher GSDP per capita and higher contribution to the gross tax revenues of the union are progressively receiving lower shares of the central fiscal transfers," he said.

Stating that during the visit of the 16th Finance Commission to the State of Karnataka, during 29-30, August 2024, he underscored the need to carefully examine the impact of high emphasis given to equity on resource devolution to well performing states, he said, "I have emphasised that the reduction in central financial transfers to well performing states is placing severe limitations on their ability to invest in physical and human infrastructure."

The taxpayers of states, which are net donors to the divisible pool, also expect a fair share of their taxes to come back to them, he said, adding that the Finance Commission therefore needs to carefully balance equity with efficiency and performance.

Pointing out that states with a strong contribution to the country's GDP and Gross Tax Revenue, help build the nation in more ways than one, Siddaramaiah said, therefore, there is an urgent need to balance equity with efficiency and performance for a stronger Union, both politically and economically.

"It is, therefore, important that states which are receiving smaller shares in horizontal devolution, compared to their contributions to the Gross Tax Revenues of the Union, need to articulate a coordinated set of proposals before the Commission," he said.

"It is my pleasure to invite you to a conclave in Bengaluru to discuss these issues further. I will send a separate invitation indicating the dates once we firm up the schedule," he added.

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