Facebook, Twitter, Google Set To Face Hefty EU Fines If Found Not Tackling Fake Accounts

Facebook, Twitter, Google Set To Face Hefty EU Fines If Found Not Tackling Fake Accounts

The updated European Union code of practice is set to bring in tighter rules for social media giants in order to curb fake accounts on the platforms.

What Happened: According to an EU document accessed by Reuters, tech giants like Alphabet Inc's GOOGL GOOG Google, Meta Platforms Inc's META Facebook, and Twitter Inc TWTR will have to take measures to counter deepfakes and fake accounts on their platforms, else they would be penalized with hefty fines under an updated code of practice.

The report noted that the European Commission is expected to publish the document on Thursday in a bid to crack down on fake news.

See Also: Elon Musk Assures EU: Plans For Twitter 'Align' With Bloc's New Content Rules

Introduced as a voluntary code in 2018, it will now become a co-regulation scheme, with responsibility shared between the regulators and signatories to the code.

"Relevant signatories will adopt, reinforce and implement clear policies regarding impermissible manipulative behaviors and practices on their services, based on the latest evidence on the conducts and tactics, techniques and procedures (TTPs) employed by malicious actors," the document said, according to Reuters.

The code will also be linked to the new EU rules known as the Digital Services Act (DSA), introduced earlier this year. The social giants that fail to live up to their obligations under the new code would face fines of up to 6% of their global turnover based on DSA rules.

Price Action: According to data from Benzinga Pro, Alphabet's Class A shares were trading 1.07% higher during the pre-market session on Tuesday. Meta shares were up 1.36% and Twitter gained ​​1.78% at the same time during the pre-market session.

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