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- Social media and other tech platforms could face fines as high as 6% of global revenue if they don’t comply with orders to remove terror propaganda or other illegal posts.
- The plans by the EU come as regulators around the world crack down on powerful tech giants in an effort to restore competition to their markets.
- European officials expect the regulatory revamp will curtail the proliferation of harmful posts, including those that incite violence.
Social media and other tech platforms could face fines as high as 6% of global revenue if they don’t comply with orders to remove terror propaganda or other illegal posts, according to a draft of European Union regulations seen by Bloomberg.
The plans by the EU come as regulators around the world crack down on powerful tech giants in an effort to restore competition to their markets. On Wednesday, Facebook was sued by US antitrust officials and a coalition of states that want to unwind its acquisitions of Instagram and WhatsApp, alleging the deals were designed to squash competition illegally.
The measures to be unveiled by the European Commission on December 15 are an attempt to force tech companies to take responsibility for illegal content posted or products sold on their sites. Tech platforms will also have to provide regulators with information about how they tackle other harmful content, according to the draft.
If Facebook was to be fined the maximum 6% under the new rules, it could cost the social network $4.2 billion, based on 2019 revenue. The new rules would still need approval by member states and European lawmakers. The Financial Times first reported the Digital Services Act draft document.
Facebook and Alphabet’s Google have come under intense scrutiny for the dissemination of hate speech and terror propaganda, alongside failing to halt the spread of disinformation during the 2016 US presidential election and the UK’s Brexit vote.
European officials expect the regulatory revamp will curtail the proliferation of harmful posts, including those that incite violence, a concern that has only deepened in the wake of recent terror attacks in France and Austria.
The announcement of the so-called Digital Services Act on Tuesday will force platforms to comply with orders by authorities to remove any piece of illegal content, including violent hate speech, and to maintain a notification system for users to flag such posts, at which point the companies could be liable for not removing it.
Some EU countries, including Germany and France, have already pushed ahead with their own laws on illegal content, but the EU is seeking to create an even set of standards across the bloc with its new measures.
The EU will establish a new board in charge of supporting national authorities to monitor tech companies’ compliance with the rules, according to the draft.
