Expert Proposes Licensing Social Media to Tackle Hate Speech

Robert Nicholls gives evidence to the Royal Commission on Antisemitism and Social Cohesion. Screenshot from Royal Commission livestreamSocial media companies could be required to hold an Australian licence as a way of making them more accountable for hate speech on their platforms, a University of Sydney expert has told a royal commission.Rob Nicholls, a senior research associate at the University of Sydney’s Centre for AI, Trust, and Governance told the Royal Commission into Antisemitism and Social Cohesion that a mandatory licensing regime would force platforms to take responsibility for content delivered to Australian users.“There would be a requirement that the social media platform operating in Australia is accountable for its actions in Australia,” Nicholls said.He said the approach would overcome jurisdictional problems currently faced by the eSafety Commissioner when trying to enforce orders against overseas-based companies such as X.At an earlier hearing, the commission heard that many social media companies had failed to fully comply with compulsory notices, citing the fact that services to Australians are delivered from overseas.Local Entity and AccountabilityUnder the proposal, platforms would need to register to operate in Australia and maintain a local entity that could be sued and held responsible. Nicholls said this would prevent companies from claiming their Australian staff were only involved in marketing while core operations occurred offshore.“If you operate in Australia, you must register to operate in Australia, and you abide by rules associated with that registration,” he said.“You take responsibility for all the services that are provided in Australia, regardless of whether they are domiciled in the US, Ireland, or the Netherlands,” he said.He suggested registered entities should have senior managers with personal responsibility for compliance, similar to company directors, and sufficient funds—certified by an auditor—to pay penalties.Avoiding Discrimination ClaimsNicholls said a registration scheme would apply equally to all platforms serving Australian users, reducing the risk of claims that the rules unfairly target companies from particular countries such as the United States or China. This could also help avoid potential trade disputes.He recommended the Australian Communications and Media Authority (ACMA) act as the registrar, with the Australian Competition and Consumer Commission (ACCC) responsible for enforcement. The scheme would operate alongside stronger powers for the eSafety Commissioner.The expert noted that a licensing model was considered during the development of the Online Safety Act, but was ultimately not adopted for political reasons.Australia recently doubled fines—from $50 million (US$32 million)—for social media platforms which fail to block users aged under 16. However, eSafety Commissioner Julie Inman-Grant conceded she lacked the power to enforce penalties on overseas-based companies.