Facebook and Instagram start blocking news in Canada

How are sites like Reddit absolved from this? Or are they? What do these new laws mean globally if our goal is to try and make the internet free and open if governments have the authority to enforce their laws on users and sites that aren't even in their legal jurisdiction? Is this going to lead us down the path of governments blocking VPN's so they gave a way to track who is owed what money and by who? This seems pretty awful.