Australia Scraps Proposed Tech Regulation on Misinformation, Citing Senate Opposition

Australia’s government has abandoned plans to impose hefty fines on internet platforms that fail to prevent the spread of online misinformation, Communications Minister Michelle Rowland announced Sunday. The shelved legislation would have allowed penalties of up to 5% of global revenue for non-compliant tech companies.

“Based on public statements and engagements with Senators, it is clear that there is no pathway to legislate this proposal through the Senate,” Rowland said in a statement, acknowledging the political reality facing the bill.

The now-defunct legislation represented a cornerstone of Australia’s broader regulatory push to assert national sovereignty over foreign tech giants operating in the country. It comes at a politically sensitive time, with a federal election expected within the next year and Prime Minister Anthony Albanese’s center-left Labor government trailing the conservative opposition in recent polls.

Rowland defended the bill’s intentions, stating it would have “ushered in an unprecedented level of transparency, holding big tech to account for their systems and processes to prevent and minimize the spread of harmful misinformation and disinformation online.”

The proposed regulation faced widespread political opposition. The Liberal-National coalition, currently in opposition, joined forces with the Australian Greens and crossbench senators to block the legislation. Greens senator Sarah Hanson-Young criticized the government’s approach on Sunday, calling it a “half-baked option” during an appearance on the Australian Broadcasting Corporation.

Despite the political resistance, polling suggests strong public support for government action on misinformation. Rowland noted that approximately 80% of Australians want measures in place to address the spread of false information online.

Industry group DIGI, which counts Meta among its members, had previously indicated that the proposed regulatory framework would have reinforced an existing voluntary anti-misinformation code already in place within the industry.

This legislative setback follows several years of Australia positioning itself at the forefront of global efforts to regulate big tech. In 2021, Australia implemented the News Media Bargaining Code, which forced platforms like Google and Facebook to negotiate payment deals with news publishers for content. That groundbreaking legislation has since inspired similar regulatory efforts in Canada and elsewhere.

The abandoned misinformation bill would have significantly expanded Australia’s regulatory reach into content moderation practices at major tech platforms. Technology experts have noted the inherent challenges in defining and regulating “misinformation” while balancing free speech concerns.

Digital rights advocates had expressed mixed reactions to the proposal. Some supported stronger oversight of platform algorithms and content moderation systems, while others raised concerns about potential overreach and the risk of legitimate speech being suppressed.

For global tech companies like Meta, Google, and X (formerly Twitter), the bill’s failure represents a regulatory reprieve in what has become an increasingly complex global compliance landscape. However, industry watchers note that pressure for tech regulation continues to build worldwide, with the European Union’s Digital Services Act setting new global standards for platform accountability.

The Australian government has not indicated whether it plans to pursue alternative legislation to address online misinformation, though Rowland’s emphasis on public concern suggests the issue remains on the political agenda as the country approaches its next election cycle.