The interesting metric isn't whether or not Facebook is losing traffic, but whether the news providers are seeing more.
That is absolutely correct. No one knows what effect Meta blocking news on Facebook is having except for the news outlets. One interesting signal, however, is how loudly the news outlets are complaining about Meta blocking news on Facebook. If this is win-win, they don't have much to complain about. In this case they want their cake and to eat it too.
Because it wasn't free traffic. It was rendered in the Facebook page, with their ads, creating load on the news providers servers and providing nothing in exchange while generating revenue for Facebook.
A little bit of context here is in order. First, if this is a problem, there are very easy remedies that don't involve passing a law forcing " digital news intermediaries"* to pay for linking to content. They could block web crawlers (remember this law applies to Google search as well). Or they could paywall their content.
And yes, the Online News Act does not require that Meta and Google pay if they are reproducing the content in part or in whole in the form of snippets, just linking without any "rendering" or crawling of the content is sufficient to incur liability according to the Online News Act.
* "digital news intermediary" is the term used in the law to describe what Meta and Facebook is. From the bill:
digital news intermediary means an online communications platform, including a search engine or social media service, that is subject to the legislative authority of Parliament and that makes news content produced by news outlets available to persons in Canada. It does not include an online communications platform that is a messaging service the primary purpose of which is to allow persons to communicate with each other privately.
Consider the wording of that definition carefully ."makes news content produced by news outlets available to persons in Canada." It doesn't matter how they make that content available. It doesn't require them to reproduce any part of the content.
Here is the full bill for anyone who is interested and dedicated enough to read it in its entirety:
https://www.parl.ca/DocumentViewer/en/44-1/bill/C-18/royal-assent