New Zealand's government introduces legislation to ban social media for under-16s

A new regulatory proposal would allow authorities to impose penalties of up to 10 % of a company’s global revenue on firms that fail to meet its requirements. The measure, aimed at tightening oversight of large digital platforms, would apply to companies such as Meta Platforms Inc., which could face fines of several hundred million dollars if found non‑compliant. The proposal is part of a broader effort to strengthen consumer protection and competition enforcement in the technology sector.

Under the draft law, firms would be required to implement stricter data‑privacy safeguards, enhance transparency about algorithmic decision‑making, and provide users with clearer opt‑in and opt‑out mechanisms. Failure to meet these obligations would trigger the revenue‑based fine, a departure from the flat‑rate penalties that have historically been used in similar contexts. Industry observers note that the proposed approach mirrors regulatory frameworks adopted in the European Union and other jurisdictions, where fines are calibrated to a company’s size to ensure proportionality.

If enacted, the law would mark a significant escalation in the regulatory burden on global tech giants, potentially reshaping how they structure their operations and compliance programs. The proposal is currently under review by lawmakers, with a decision expected later this year.