Digital giant Meta is terminating the contract for a fellowship program that supports the hiring of a limited number of emerging journalists at newswire service The Canadian Press

The move comes amid fallout from the federal government's Online News Act, formerly known as Bill C-18, which became law last week.

The law requires tech companies such as Facebook parent Meta and Google to negotiate deals compensating media outlets for news content they share or otherwise repurpose on their platforms.

Meta has threatened to block access to Canadian news on their sites in retaliation.

Canadian Press president Malcolm Kirk says Meta told the newswire agency that the Online News Act has a negative affect on Meta’s position in Canada to operate some products.

The Liberal government's Online News Act is intended to help preserve Canadian journalism at a time when newsrooms are struggling to compete for online advertising dollars.

This report by The Canadian Press was first published June 29, 2023.