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Australia moves to fine social media companies that spread misinformation up to 5% of global revenue

The Australian government has threatened to impose fines of up to 5% of global revenue on online platforms that fail to prevent the spread of misinformation, joining a global movement to crack down on tech giants such as Facebook and X.

The bill introduced on Thursday would require tech platforms to set up a code of conduct (which must be approved by regulators) that includes guidelines on how to prevent the spread of dangerous misinformation.

If platforms fail to create these guidelines, regulators will be able to set their own standards for platforms and impose fines for violations.

Australia has announced that it will impose fines of up to 5% of global revenue on online platforms that fail to prevent the spread of misinformation. Reuters

The bill targets false content that threatens to undermine election integrity or public health, disparage groups or call for harm against people, or disrupt critical infrastructure or emergency services.

Meta chief executive Mark Zuckerberg has previously said Facebook's parent company could block professional news content from its platform if it is forced to pay royalties.

Elon Musk's X (formerly known as Twitter) has notably removed most of its content moderation since he acquired the platform in 2022.

Earlier this month, a Brazilian judge blocked the site formerly known as Twitter in South America's largest country for spreading false information.

Free speech advocates have condemned the widespread crackdown around the world, but experts say Australia's decision to hold social media giants to account could have repercussions closer to home.

“There's movement and attention. Whether anything actually passes remains to be seen. [in the US] “The big question is whether that's going to happen in the near future,” Daniel Coffey, CEO and president of the News Media Alliance, told The Post.

In the United States, social media companies are protected by Section 230 of the Communications Decency Act, a long-standing and controversial law that protects platforms from being sued over content posted by users.

“We welcome you back in some form. [of Section 230] …So these platforms are responsible for the content they distribute at scale, Coffey said.

“You would think there would be some responsibility.”

Last month, the Senate passed a landmark Child Online Safety Act and Zuckerberg made headlines by apologizing to parents who accused his platform of encouraging suicide and exploitation of their children.

Meta's Mark Zuckerberg made headlines when he apologized to parents who claimed his platform contributed to the suicide and exploitation of their children. AP

The Australian bill is the country's latest effort to curb broad immunity for tech platforms from being held accountable for harmful content and was introduced ahead of the country's federal election.

“Misinformation and disinformation pose a serious threat to the safety and wellbeing of Australians, as well as our democracy, society and economy,” Communications Minister Michelle Rowland said in a statement.

“Doing nothing and leaving this problem alone is not an option.”

The first version of the bill was criticised in 2023 for giving Australia's communications regulator too much power to decide what constitutes misinformation and disinformation – disinformation refers to the deliberate spreading of lies.

Elon Musk has come under fire for spreading AI-generated images on his platform. GC Image

Rowland said the new version of the bill does not give authorities the power to force the removal of certain content.

The bill protects professional news, arts, and religion content. It does not protect government content.

About four-fifths of Australians want the spread of misinformation tackled, the minister said, citing the Australian Media Literary Alliance.

Nearly nine in 10 Australians are Facebook users.

The bill could pave the way for the United States to implement similar online safety regulations. AFP via Getty Images

Meta did not immediately respond to a request for comment.

X did not immediately respond to inquiries about whether it complies with the law.

Opposition home affairs spokesman James Patterson said the bill had not yet been reviewed but said “Australians' legitimate political beliefs should not be censored by their governments or foreign social media platforms.”

The Australian Communications and Media Authority said it welcomed legislation “that gives the agency a formal regulatory role to combat misinformation and disinformation on digital platforms”.

With post wire

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