Millions lost to online scams in Australia. New law targets Big Tech, forcing them to stop hosting scams or face fines.
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| Cryptocurrency scams soar, so Australia takes action. New law puts pressure on internet companies to fight online scams. |
Sydney, July 12, 2024:
Australia is taking a tougher stance against online scams by proposing a law that would hold internet companies accountable for hosting scams. This could lead to a new battle with Big Tech companies like Meta, which has already clashed with the Australian government over content licensing fees.
The plan involves creating mandatory, enforceable codes that require internet companies, banks, and telecoms to proactively prevent scams and offer effective complaint mechanisms. This comes after a surge in online scams, with Australians losing billions of dollars, particularly through cryptocurrency scams.
The key point of contention is the legal liability placed on internet platforms. Traditionally, these platforms have operated under US laws that shield them from responsibility for user-posted content. Australia's new law could set a precedent and create conflict with these established legal norms.
This isn't the first time Australia has challenged Big Tech. A previous law requiring internet companies to compensate media outlets for content links resulted in threats from Meta to block Australian news on Facebook.
The Australian government is pushing forward, aiming to have the anti-scam codes implemented by the end of the year. Non-compliance could lead to hefty fines. The government sees mandatory codes as a more efficient approach than lengthy lawsuits, which is what they're currently pursuing against Meta for failing to take down scam ads.
Meta, unsurprisingly, prefers a voluntary approach and argues that mandatory codes might stifle innovation. How this battle plays out will be closely watched, with potential implications for online regulations worldwide.