Meta Platforms, Google, Twitter pledge to fight against fake news after EU toughens stance
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Meta Platforms (NASDAQ:META), Google (NASDAQ:GOOG) (GOOG), Twitter (NYSE:TWTR) and Microsoft (NASDAQ:MSFT) were among the more than 30 companies that pledged to fight fake news and other forms of disinformation after the European Union updated its laws that could result in big fines, according to Reuters.
The news outlet added that the updated Code of Practice on disinformation from the European Commission now has more than 30 signers, including advertising bodies.
If the companies do not adhere to the Code of Practice and work to take down fake accounts, combat deep fakes, they could be hit with fines of as much as 6% of global turnover, the news outlet reported.
For context, Alphabet (GOOG) (GOOGL) generated $257B in revenue in 2021, while Meta Platforms (META), Twitter (TWTR) and Microsoft (MSFT) generated $117B, $5B and $168B in sales, respectively.
Other signers to the deal include ByteDance's (BDNCE) TikTok and Amazon's (AMZN) Twitch.
The companies will have six months to comply with the new rules and have to present progress reports starting next year, with potential sanctions going as far as companies being banned from Europe, according to EU industry chief Thierry Breton.
"If there is consistent flouting of the rules, we can also think about stopping their access to our space of information," Breton said at a news conference, according to Reuters.
On Wednesday, investment firm Piper Sandler was moderately positive on Meta Platforms (META), suggesting some of the company's headwinds are "moderating" a bit.