‘Online hate’: Why tech giants could be fined billions

A review has advised the maximum penalty for tech companies over ‘online hate material’ should be lifted — potentially costing billions.

Australia needs a bigger stick to threaten tech giants who fail to reduce harms like the spread of child sex material, terrorist content and online hate, as a review recommends increasing fines by up to billions of dollars.

In an effort to depoliticise what constitutes “online hate material” the federal government is also being advised to add a definition to Australia’s Online Safety Act, that captures attacks against a person based on a “protected characteristic” like religion or race, but does not include views regarding “ideas, concepts or institutions”.

This would ensure tech platforms are required to prevent the spread of anti-semitic or homophobic material, for example, without sparking broader free speech concerns.

A review recommends increasing fines by up to billions of dollars to threaten tech giants who fail to reduce harms like the spread of child sex material, terrorist content and online hate. Picture: iStock

The review, to be released publicly on Tuesday, will also recommend the definition of online hate material consider exclusions for artistic, scientific or journalistic purposes, as well as potential impacts on the implied constitutional freedom of political communication.

Amid concerns Australia’s current financial penalties have fallen behind international comparisons and are not currently enough to incentivise social media platforms, search engines and other apps, the review will also recommend the maximum penalty be lifted to the greater of either five per cent of global annual turnover or $50 million.

Meta Platforms, which includes Facebook and Instagram, generated more than US$164 billion last year, meaning the potential maximum fine for the company would be $8bn.

Mark Zuckerberg is the CEO of Meta. Picture: Pool/Getty Images/AFP

The final report following the independent review of the nation’s Online Safety Act conducted by former deputy chair of the Australian Competition and Consumer Commission (ACCC) Delia Rickard has set out 67 recommendations for government to consider, with a key requirement on imposing a duty of care on big tech companies already accepted by Labor.

This will shift Australia away from the current focus on reporting and requesting the take down of harmful material, to working with and asking platforms to undertake preventive safety measures.

Ms Rickard will recommend the key focus of this duty of care should be on harms to young people, including child sexual exploitation and abuse; harms to mental and physical wellbeing, such as attacks based on a person’s race, disability, age or religion; instruction or promotion of harmful practices like disordered eating and suicide; threats to national security and social cohesion; and other illegal content and activity.

Delia Rickard, Senior Executive Leader at Australian Securities and Investments Commission. In Canberra. Picture: Supplied

She will also advise government that services used by 10 per cent of Australian users or more should be automatically given additional mandatory safety responsibilities, while the regulator should also be able to nominate smaller platforms deemed a higher risk to be included in this group.

Communications Minister Michelle Rowland said the government was committed to ensuring the online world was a “safe experience for all”.

“Our government has been proactive in ensuring our legislative framework remains fit-for-purpose,” she said.

“That’s why we’ve wasted no time in committing to legislate a digital duty of care to place the onus on online services to keep their users safe.”

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