Australia is set to introduce legislation imposing fines of up to 5% of global revenue on tech companies that fail to curb the spread of misinformation online.

The bill, part of a broader regulatory effort, requires internet platforms to establish codes of conduct to prevent harmful falsehoods.

If platforms fail to comply, a government regulator will set standards and enforce penalties for non-compliance.

The legislation targets misinformation that threatens public health, election integrity, or critical infrastructure and comes amid growing concerns about foreign-based tech companies influencing Australian sovereignty.

Communications Minister Michelle Rowland emphasized the importance of addressing the threat misinformation poses to Australia's democracy and economy.

Despite criticism of an earlier draft for granting excessive powers to the media regulator, the revised bill limits the regulator's ability to force content removal and protects professional news, artistic, and religious content.

The bill arrives as platforms like Meta (Facebook) and X (formerly Twitter) face scrutiny for reducing content moderation and refusing to pay news royalties.

The legislation has sparked debate over free speech, with critics warning against government or foreign platforms censoring political beliefs.