On Sunday, Australia's Communications Minister Michelle Rowland announced a new plan to combat the spread of fake news and misinformation on platforms like Facebook, Google, and Twitter. The plan involves potentially imposing multi-billion-dollar fines on tech companies that repeatedly fail to remove undesirable content.
What Happened: The Australian Communications and Media Authority (ACMA) may soon have the power to impose fines on tech giants that fail to combat misinformation on their platforms, 9News reported. The maximum penalties for systemic breaches could amount to 2% or 5% of a company's global turnover, depending on the type of infringement. For companies like Meta Platforms Inc. (NASDAQ: META), and Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) this could result in a fine of more than $8 billion.
Why It Matters: This move comes as part of the Albanese government's efforts to hold digital platforms accountable for misinformation on their services.
"Mis- and disinformation sows division within the community, undermines trust, and can threaten public health and safety," Rowland said. This is not the first time Meta has faced legal challenges in Australia. The company has previously been sued over issues related to user data collection and payment for news content.
The draft legislation is currently open for public consultation. Rowland emphasized the need to find a balance between protection from fake news and freedom of speech. She plans to introduce the bill into parliament later this year, following the consultation process.