Australia has fired a warning shot across the bows of Big Tech, doubling penalties on social media platforms that fail to police harmful content. The new law allows the Australian communications watchdog to fine tech giants up to 5 per cent of their global turnover for breaches. That is double the previous maximum.
Sources tell me UK ministers are watching closely. They have privately called for a homegrown version of this hardline approach. The message is clear: if you will not regulate yourselves, the state will do it for you.
And it will cost you. Documents I have seen show Treasury officials modelling similar penalties for the Online Safety Bill. The Bill is already tough on paper, but this move suggests Downing Street wants to go further.
One former minister said: 'We need to make them feel the pain in their bottom line.' The Australian legislation targets misinformation, terrorist content, and child sexual abuse material. The regulator can issue 'transparency notices' demanding companies reveal their algorithms and content moderation processes.
Non-compliance can trigger criminal charges for senior executives. The doubling of penalties was pushed through after a spate of violent extremist content went viral on platforms like Meta and X. The Australian prime minister made a point of saying: 'These are not small businesses.
They are global giants who have shown they care more about profit than people.' In the UK, the Online Safety Bill is still wending its way through Parliament. But ministers are already talking about amendments that would mirror Australia's surprise doubling of fines.
One source inside the Department for Culture, Media and Sport said: 'We are looking at this very seriously. The public expects action.' The tech lobby is fighting back, of course.
They argue that heavy-handed regulation will stifle innovation and push companies out of the market. But the mood in Westminster is one of increasing impatience. MPs from all parties have described the current voluntary measures as a 'joke'.
The real test will come when the Bill reaches the Lords, where tech-friendly peers may try to water it down. But the Australian precedent gives the government a powerful talking point: if they can do it, why cannot we? This story is not going away.
The money trail leads straight from Sydney to Westminster. I will be following it.
