Social media giants could be fined billions if they spread lies

Social media giants could be fined billions if they fail to crack down on lies being spread on their platforms under draft legislation to be ­released by the federal government on Sunday.

Social media giants could be fined billions if they fail to crack down on lies being spread on their platforms under draft legislation to be ­released by the federal government on Sunday.

In a move that could bring the country into conflict with the likes of Facebook and ­Twitter, the government plans to give itself the power to fine them as much as 5 per cent of their global turnover if they don’t enforce standards on misinformation and ­disinformation.

Based on their current revenue, in the case of a breach by Facebook’s parent company Meta this could see it liable for fines of more than $8 billion — and more than $200 million in the case of Twitter.

Under the proposed changes to the law, the Australian Communications and Media Authority (ACMA) will be given powers to demand information and documents on how they are tackling misinformation and disinformation on their platforms.

ACMA will also have the power to order the social media industry to develop new codes of conduct or vary an existing code if it decides they’re not up to scratch.

The plans aim to limit misinformation and disinformation.

These codes will also have to be registered with ACMA making compliance with them compulsory for all digital services providers, regardless of whether they have chosen to sign up to a voluntary code.

And, if social media companies fail to come up with a code that is acceptable to the regulator, it will be given the power to impose one on them.

The proposed new powers for the regulator will be confined to the imposition of rules for the social media giants to follow and tests of whether they are being followed.

Crucially, it will not be given the power to test the truth or otherwise of individual posts or tweets.

Authorised political material will also be excluded from the new rules.

Communications Minister Michelle Rowland said misinformation and disinformation sowed division within the community and undermines trust, threatening public health and safety.

“The Albanese government is committed to keeping Australians safe online, and that includes ensuring the ACMA has the powers it needs to hold digital platforms to account for mis and disinformation on their services,” she said.

Misinformation is defined as content that is “false, misleading or deceptive” and that is “reasonably likely to cause or contribute to serious harm”.

Disinformation is misinformation that is “disseminated with intent to deceive, ­including through automated processes and foreign ­interference” including ­content “purposefully or ­maliciously disseminated”.

Ms Rowland said the ­consultation process would give ­industry and the public the opportunity to have their say on the proposed framework.

“I encourage all stakeholders to make a submission and look forward to introducing the Bill into parliament later this year, following the consultation process,” she said.

Originally published as Social media giants could be fined billions if they spread lies