Tech companies will be required to develop codes of conduct, with regulators stepping in if necessary.

Australia has announced plans to penalize internet platforms up to 5% of their global revenue for failing to curb online misinformation.

The move aligns with global efforts to regulate tech giants, but free speech advocates have expressed concerns, Reuters reports.

Tech companies will be required to develop codes of conduct, with regulators stepping in if necessary.

It was also stated that if the tech companies failed to establish these codes, the regulator would set its own standard, then fine companies for non-compliance.

The legislation, to be introduced in parliament on Thursday, targets false content that hurts election integrity or public health, calls for denouncing a group or injuring a person, or risks disrupting key infrastructure or emergency services.

The bill is part of a wide-ranging regulatory crackdown by Australia, where leaders have complained that foreign-domiciled tech platforms are overriding the country’s sovereignty, and comes ahead of a federal election due within a year.

Already Facebook owner Meta (META.O), has said it may block professional news content if it is forced to pay royalties, while X, formerly Twitter, has removed most content moderation since being bought by billionaire Elon Musk in 2022.

“Misinformation and disinformation pose a serious threat to the safety and wellbeing of Australians, as well as to our democracy, society and economy,” said Communications Minister Michelle Rowland in a statement.

An initial version of the bill was criticised in 2023 for giving the Australian Communications and Media Authority too much power to determine what constituted misinformation and disinformation, the term for intentionally spreading lies.

Rowland said the new bill specified the media regulator would not have power to force the takedown of individual pieces of content or user accounts.