SYDNEY: In response to laws that would fine social media companies for failing to stop the spread of false material online, Elon Musk, the owner of the social networking platform X, called Australia’s centre-left government “fascists” on Friday.

In line with a global initiative to regulate tech giants, Australia’s Labour government tabled the legislation in Parliament on Thursday. If internet platforms enable disinformation to spread, they could face fines of up to 5% of their global sales.

Subject to regulatory approval, the proposed bill would compel digital businesses to create codes of behaviour intended to prevent the dissemination of harmful false information. The regulator would enforce its own rules and penalise businesses for non-compliance if a platform is unable to produce a code that is acceptable.

As a champion of free expression, Musk reacted with one word to a remark made by an X user that linked to a Reuters story about the new law: “Fascists.” Musk has previously clashed with the Australian government. Following X’s April legal battle against a cyber regulator’s request to remove specific tweets about the stabbing death of a Sydney bishop, Prime Minister Anthony Albanese called Musk a “arrogant billionaire.”

Government representatives reacted angrily to Musk’s recent remark mocking the bill. Referring to the comment as “crackpot stuff,” Assistant Treasurer Stephen Jones said, “This is about sovereignty, and whether it’s the Australian government or any other, we reserve the right to pass laws that ensure the safety of Australians.”

Jones went on to say that social media companies shouldn’t use their right to free speech as an excuse to spread violent livestreams, deepfakes, and fraudulent content.