Big Tech to Be Fined For Deepfakes, Fake Accounts Under Strengthened EU Disinformation Rules

What’s happening

The EU has overhauled its Code of Practice on disinformation to strengthen rules around how tech companies tackle problems including deepfakes, bots and fake accounts.

Why it matters

The revised code will mean that tech companies could incur massive fines for failing to take action on disinformation.

What’s next

Signatories to the code, including Meta, Google, Twitter and TikTok will have six months to show that they’re complying with the updated rules, with their reports due in early 2023.

An overhauled set of rules designed to stem the flow of disinformation were introduced by the European Commission on Thursday. The EU’s strengthened Code of Practice on disinformation will hold signatories to the code, which include tech giants Meta, Google, TikTok and Twitter, liable for failing to take action by fining them up to 6% of their global revenue.

The revised rules were announced in a press conference, in which Commissioners Vera Jourova and Thierry Breton explained the code had been updated to address some of its shortcomings. As well as covering additional “manipulative behaviors,” including deepfakes, bots and fake accounts, the new rules aim to eliminate financial incentives for the spread of disinformation, by ensuring those disseminating problematic content do not benefit from advertising revenue.

Platforms will also have to give users new tools to recognise, understand and flag disinformation. “Disinformation is a form of invasion of our digital space, with tangible impact on our daily lives,” said Breton in a statement. “Online platforms need to act much strongly, especially on the issue of funding. Spreading disinformation should not bring a single euro to anyone.”

When the EU first introduced its disinformation code in 2018, participation was voluntary and the rules were created as an alternative to legislation. Four years on, the problem of disinformation, which became readily apparent following the 2016 UK Brexit referendum and US presidential election, has become even more widespread during the COVID-19 pandemic and the war in Ukraine. “This new anti-disinformation Code comes at a time when Russia is weaponising disinformation as part of its military aggression against Ukraine, but also when we see attacks on democracy more broadly,” said Jourova. Europe’s digital rules have also changed since the code was introduced, and the code is now underpinned by legislation — specifically the Digital Services Act, which was finalized in April.

The DSA was designed to hold digital platforms to account and will give the EU more power to monitor companies to ensure they’re complying with the disinformation code. Signing up to the code is still voluntary, and the EU has now opened it up to smaller companies alongside the existing signatories, that were all major tech platforms. There are 33 signatories so far to the revised rules, more than double the number that were previously involved.

Updating the rules has been a collaborative process with existing signatories, said Breton. The EU had been subject to lobbying by tech companies, he said, but added that he and Jourova were used to it and big tech had not got its way on everything it asked for. “Combating the spread of misinfo is a complex and evolving societal issue,” said Meta President of Global Affairs Nick Clegg on Twitter. “We continue to invest heavily in teams and technology, and we look forward to more collaboration to address it together.”

A spokesman for Twitter said that the company welcomed the updated code. “Through and beyond the Code, Twitter remains committed to tackling misinformation and disinformation as we continue to evaluate and evolve our approach in this ever-changing environment,” he said.

“As a signatory to the Code of Practice on Disinformation since 2020, we’re proud to have played our part in drafting this new Code, and we look forward to furthering our work by joining forces to combat disinformation and promote authentic online experiences for our communities,” said a spokeswoman for TikTok.

Google didn’t immediately respond to request for comment.