Introducing a Social Licence for Social Media Companies in Australia
Social media giants such as Meta, TikTok, and X have been operating in Australia without adhering to Australian laws and regulations. This has prompted calls for the introduction of a “social licence” system by Michael Miller, Executive Chairman of News Corp Australia. Miller argues that these tech giants, which make significant profits in Australia, need to play by the country’s rules and face consequences for their actions.
Miller highlights the negative impacts of social media on society, citing various studies. He notes that misogyny is rampant online, with 65 percent of Australian girls and young women reporting harassment or abuse by boys online. Additionally, there has been an alarming rise in online exploitation, with 32 million reports on major platforms each year. Miller argues that social media companies profit from harmful content, including evil videos, bullying, and glamorizing eating disorders.
Under Miller’s proposed social licence system, social media companies would be required to obtain a licence and adhere to a set of laws and requirements. This would make them liable for all content amplified, curated, and controlled by their algorithms or recommender engines. Currently, these companies can avoid consequences by hiding behind Section 230 of the U.S. Communications Decency Act, which provides limited federal immunity for content on their platforms. Miller argues that this law has allowed U.S.-based tech companies to act without care.
The push for a social licence fee comes as Meta’s contracts with Australian news organizations, including News Corp Australia, are set to expire soon. In 2021, following the introduction of the News Media Bargaining Code, Google and Meta entered into commercial deals with local news organizations for publishing Australian news content. These deals have already generated up to $200 million for Australian media companies. However, Meta recently announced that it would not renew the contracts, leading to objections from the Labor government and media outlets.
In addition to the social licence fee, Miller proposes other requirements for social media companies. He suggests the need for an effective consumer complaint handling system with staff located in Australia. He also supports the ex-ante competition framework set out by the Australian Competition and Consumer Commission (ACCC) to address the monopolized digital advertising markets. Furthermore, Miller calls for penalties, including criminal sanctions, for companies that violate the laws. He believes that if companies refuse to play by the rules, access to the country and its people should ultimately be blocked.
Miller argues that his proposal is not overreaching, as it is common practice in other industries like mining. He emphasizes that if companies want to access every aspect of people’s lives and profit from their habits and choices, there should be consequences for any damage caused. The introduction of a social licence for social media companies would ensure that they operate within the boundaries of Australian laws and protect the well-being of individuals and society as a whole.
