News Corp Australia Executive Chairman Michael Miller has called on the Labor government to introduce a “social licence” to make multinational social media companies adhere to Australian laws and requirements.
Speaking at the National Press Club of Australia on June 5, Mr. Miller claimed social media giants were not subject to Australian laws, while making profits in the country.
“They refuse to play by our rules. These tech giants, especially the social media networks such as Meta, TikTok, and X, operate outside our legal system,” he said.
“We know the collective damage that was caused to our young and elderly, businesses big and small, to our democracy and to our economy. How long has Australia allowed them to operate as protective species?”
The chairman then talked about the negative impacts of social media on society, citing data from a number of studies.
“Misogyny among young men is appallingly rife, 65 percent of Australian girls and young women report being harassed or abused by boys online,” he said.
“West Australian newspapers reported in March about the explosion in online exploitation, with 32 million reports on major platforms each year. This is just the tip of a very large iceberg.”
Mr. Miller alleged that such impacts were the result of social media companies profiting from bad online content and allowing it to spread.
“Because on social media, bad behaviour is good for business,” he said, noting that social media companies made around US$136 million ($204 million) in profit daily.
“The social media giants–they profit from evil videos. They profit from bullying. They profit from online con artists. They profit from glamorising eating disorders.”
Social Licence Proposal
As Mr. Miller proposed “social licence” system that provided permission for platforms to operate in Australia.Under such a system, tech companies will be required to pay for the licence and adhere to a package of laws and requirements.
“The Australian Government will be able to make platforms liable for all the content that is amplified, curated and controlled by their algorithms or recommender engines now hiding behind section 230 [of the U.S. Communications Decency Act] in Australia,” he said.
During his speech, Mr. Miller claimed that the above law had allowed U.S.-based tech companies to avoid consequences and act without care.
News Corp boss’ call for a licence fee comes as Meta’s contracts with Australian news organisations, including News Corp Australia, are set to expire in the coming months.
Following the introduction of the News Media Bargaining Code in 2021, Google and Meta entered into commercial deals with local news organisations for publishing Australian news content.
The government estimates that Australian media companies have received up to $200 million (US$130 million) from the deals so far.
Other Proposed Requirements
In addition, Mr. Miller said the proposed social licence should include requirements for each platform to have an effective consumer complaint handling system with contactable staff in Australia.“Other measures to be included the ex-ante competition framework, set out by the ACCC [Australian Competition and Consumer Commission], which would address the problem of the monopolised digital advertising markets,” he said.
Mr. Miller also said there needed to be penalties that applied to companies violating the laws.
“Penalties that incorporate criminal sanctions for companies, and their executives that agree to the licence and then break the rules and the power to ultimately block access to our country and our people if they refuse to play by our rules,” he said.
The chairman believed his proposal was not overreaching as it was common practice in other industries, such as mining.
“If a company wants the right to access every part of our lives so they can profit from our habits and choices, so it can sell us the goods and its machine thinks we want, so it can take on our existing industries and business practices, then there’s a price to pay for that access, penalties to pay for any damage caused.”
