NOV 24,(V7N) - Australia has abandoned plans to impose hefty fines on social media companies that fail to curb misinformation on their platforms, Communications Minister Michelle Rowland announced Sunday.

The proposed legislation had aimed to introduce penalties of up to 5% of a company’s annual turnover for breaching new online safety rules. However, Rowland confirmed the bill had been shelved due to strong opposition in the senate.

“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.

The proposal had drawn sharp criticism, including from Elon Musk, who in September accused the Australian government of acting like "fascists."

Australia has been a pioneer in regulating tech giants, pushing policies that challenge their operations. Despite withdrawing the misinformation bill, the government remains committed to other digital safety measures.

In a separate effort to protect children, Australia has tabled new laws banning social media access for those under 16. Under the proposed regulations, companies failing to enforce age restrictions could face fines exceeding US$30 million.

The move reflects Australia’s ongoing determination to address the impact of social media on vulnerable populations while balancing political realities and industry pushback.

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