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Tag: annual turnover

  • EU charges Meta and TikTok over failures to tackle illegal content

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    The European Commission has found that Meta and TikTok had violated rules under the Digital Services Act (DSA) and is now giving them the chance to comply if they don’t want to be fined up to 6 percent of their total worldwide annual turnover. According to the Commission, Facebook, Instagram and TikTok have “put in place burdensome procedures and tools” for researchers who want to request access to public data. This means they’re stuck with incomplete or unreliable information if they want to do research on topics like how minors are exposed to illegal or harmful content online. “Allowing researchers access to platforms’ data is an essential transparency obligation under the DSA,” the Commission wrote.

    In addition, the Commission is charging Meta over the lack of a user-friendly mechanism that would allow users to easily report posts with illegal content, such as child sexual abuse materials. The Commission explained that Facebook and Instagram use mechanisms that require several steps to be able to flag posts, and they use dark interface designs that make reporting confusing and dissuading. All those factors are in breach of DSA rules that require online platforms to give EU users easy-to-use mechanisms to be able to report illegal content.

    Under the DSA, users must also be able to challenge social networks’ decisions to remove their posts or suspend their accounts. The Commission found that neither Facebook nor Instagram allow users to explain their sides or provide evidence to substantiate their appeals, which limits the effectiveness of the appeal process.

    Meta and TikTok will be able to examine the Commission’s investigation files and to reply in writing about its findings. They’ll also have the opportunity to implement changes to comply with DSA rules, and it’s only if the Commission decides they’re non-compliant that they can be fined up to 6 percent of their global annual turnover. Meta disagreed that it had breached DSA rules, according to Financial Times. “In the European Union, we have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” it said in a statement. Meanwhile, TikTok said it was reviewing the Commission’s findings but that “requirements to ease data safeguards place the DSA and GDPR in direct tension.” It’s asking regulators for guidance on “how these obligations should be reconciled.”

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    Mariella Moon

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  • Australia Plans Fines Up To 10% Of Turnover For Crypto Rule Breaches

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    Australia plans to hit digital asset platforms with penalties of up to 10% of annual turnover if they breach new rules, under draft legislation released on Thursday.

    The proposal requires exchanges and other operators to secure an Australian Financial Services Licence. Firms that fail to act honestly and fairly, or that engage in misleading conduct and unfair contract terms, would face the greater of three penalties, A$16.5m (US$10.9m), three times the benefit gained, or 10% of annual turnover.

    These rules build on existing anti-money laundering obligations overseen by AUSTRAC and complement the Australian Taxation Office’s scrutiny of crypto transactions for capital gains tax.

    The ATO can already impose fines worth up to three times the amount evaded or pursue prison terms in cases of serious breaches.

    The draft law will remain open for consultation until Oct. 24. It marks one of the most significant moves yet to regulate an industry that includes major global players such as Coinbase and Kraken.

    Australia’s regulators have repeatedly warned about the risks of surging retail crypto investment. The nation’s securities and prudential watchdogs, as well as the central bank, have pressed for tougher standards. In August, financial crimes agency AUSTRAC ordered Binance’s local arm to appoint an external auditor over money laundering and terrorism financing concerns.

    Treasury said the new regime will bring digital asset and tokenized custody platforms under the Corporations Act, extending consumer protections and formal licensing requirements.

    Smaller players will not face the full burden. Platforms that hold less than A$5,000 per customer and process under A$10m in annual transactions will be exempt.

    The effort reflects a balancing act, with policymakers seeking to protect investors without stifling innovation. Industry feedback over the next month will shape the final framework before it moves toward parliament.

    Separately, the Australian Securities and Investments Commission last week granted class relief to intermediaries distributing stablecoins issued by licensed AFS providers. The measure, which runs until June 2028, exempts them from separate market, clearing and settlement licences when handling stablecoins from approved issuers.

    The relief is the first of its kind in Australia, signalling regulators’ willingness to provide flexibility where oversight is already embedded in existing financial licences.

    Read original story Australia Plans Fines Up To 10% Of Turnover For Crypto Rule Breaches by Shalini Nagarajan at Cryptonews.com

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