Australia Takes a Stand Against Misinformation: Fines for Social Media Giants on the Horizon

Australia is set to introduce legislation that could impose fines of up to 5% of global revenue on internet platforms that fail to prevent the spread of misinformation. This move marks Australia’s latest effort to tackle the issue of false information online and joins a broader global trend aimed at regulating powerful tech giants.
The proposed bill, to be introduced in parliament on Thursday, requires tech platforms to establish codes of conduct to combat dangerous misinformation. These codes must be approved by a regulator, which will set its own standards if a platform fails to comply. Companies that do not meet these standards could face substantial fines.
The legislation targets misinformation that could undermine election integrity, public health, or safety, including content that incites violence, disparages individuals or groups, or threatens critical infrastructure and emergency services.
This bill is part of a broader regulatory crackdown in Australia, driven by concerns that foreign tech platforms are compromising the country’s sovereignty. It comes in the lead-up to a federal election expected within a year.
Major tech companies are already reacting to regulatory pressures. Meta, the parent company of Facebook, has threatened to block professional news content if forced to pay royalties. Meanwhile, X (formerly Twitter) has significantly reduced its content moderation practices since its acquisition by Elon Musk in 2022.
Communications Minister Michelle Rowland emphasized the seriousness of the threat posed by misinformation. “Misinformation and disinformation pose a serious threat to the safety and wellbeing of Australians, as well as to our democracy, society, and economy,” she said. “Doing nothing and allowing this problem to fester is not an option.”
The initial version of the bill faced criticism in 2023 for granting excessive power to the Australian Communications and Media Authority (ACMA) in determining what constitutes misinformation. The revised bill clarifies that the ACMA will not have the authority to remove individual pieces of content or user accounts, and it specifically protects professional news, artistic, and religious content from being targeted.
Public sentiment is largely in favor of addressing misinformation, with about 80% of Australians supporting action, according to the Australian Media Literacy Alliance.
Meta, which has a significant user base in Australia, declined to comment on the new bill. The industry body DIGI, which includes Meta as a member, stated that the new regime builds on an anti-misinformation code it updated in 2022, though many questions remain. X has not yet responded to requests for comment.
Opposition home affairs spokesman James Paterson has expressed concern about potential censorship, stating that Australians’ political beliefs should not be suppressed by either the government or foreign social media platforms.
The ACMA has welcomed the new legislation, viewing it as a formal step towards regulating misinformation and disinformation on digital platforms.