Are We Stuck Watching from the Sidelines? NZ’s Struggle to Keep Mega Platforms in Check
At this week’s member meetup Tech Chat Tuesday we discussed a good range of topical issues from whether Co-Pilot adds value to our lives, to the Privacy Act of road safety cameras to the environmental cost of mega-computing and our use of AI.
Throughout all of the topics the group kept coming back to the implications of living at the end of the world here in Aotearoa, and the reality that our government and consumers don’t exactly have the same muscle to flex as powerhouse economies like the U.S. or EU when it comes to regulation, standards and compliance.
Here’s a recap of our chat, looking at how other countries are stepping up—and how New Zealand is beginning to position itself in this global regulatory struggle.
Brazil’s Showdown with X: Can Governments Flex Enough Muscle?
We quickly jumped to discuss Brazil’s recent face-off and ultimately banning the platform X from operating there. In a nutshell, back in August 2024, Brazil’s Supreme Federal Court pulled the plug on X, temporarily suspending the platform for failing to comply with its laws around misinformation and hate speech. X only got back online in October after paying a hefty fine and following court demands. This was a serious move by Brazil, flexing its regulatory muscle in a way few countries have dared.
In New Zealand, though, this raised a big question: could we even do the same? Google already threatened to remove links to New Zealand news and ditch local agreements as threats ramp up over Fair Digital News Bargaining Bill. While Brazil managed to push X into compliance, here, our regulatory moves have been limited.
How Other Countries Are Pushing Back Brazil isn’t alone in taking on the mega platforms. It’s a very nuanced situation: most governments just don’t have the resources to go head-to-head with companies this powerful, but some are:
France: The French government is holding Telegram accountable, even going after its founder for refusing to provide user data for investigations into money laundering. France’s is trying to show a commitment to real accountability on platform safety issues, and arresting the founder raises the stakes for how far governments are willing to go.
United States: In the U.S., TikTok is in a legal battle over a proposed law that would force it to sell its U.S. operations.
Malaysia: Starting January 2025, Malaysia is requiring social media platforms to get licenses to operate, aiming to tackle issues like cyberbullying and financial scams. Meta has already voiced concerns, saying these new rules could curb digital innovation. But it looks like Malaysia’s move is a clear signal of intent to make platforms accountable on its own terms.
Vietnam: Vietnam’s draft law on data protection is pretty controversial. On one hand they are proposing to reduce cross-border transfers and propose Cloud platforms seek “prior authorisation for the transfer overseas” of any data. The platforms and Cloud hosts are saying is untenable. On the other hand under the draft law, companies will have to share data with Vietnam's ruling Communist Party and state organisations in multiple, vaguely defined cases including for "fulfilling a specific task in the public interest." Also very unpopular.
Are we relegated to watching from the sidelines?
Our discussion highlighted that, as a small nation, New Zealand faces significant challenges in regulating major digital platforms. While we've implemented measures like applying GST to online transactions and enforcing tax compliance, even the Fair Digital News Bargaining Bill are pushing further we are a tiny economy with a tiny population.
Australia's Proactive Measures
Australia has taken assertive steps to regulate digital platforms, particularly targeting companies like Google. I remember meeting with the ACCC during a briefing for then Minister of Digital Services Kris Faafoi and their ambition, drive and commitment to protecting citizens from exploitation was palatable:
Proposed fines for enabling Misinformation
Consumer Data Rights - which we are now following suit on
Australia's actions demonstrate that smaller nations can implement robust regulatory frameworks, New Zealand faces unique challenges. Our limited resources and market size mean we often adapt to policies set by larger entities like the EU and the U.S. - or we just do nothing (eg: GDPR). The question remains: can New Zealand develop and enforce regulations that effectively address the influence of major digital platforms, or will we continue to follow the lead of more influential players?
Continuing to follow in Australia’s footsteps in this instance wouldn’t be a bad call. Well that was one conclusion from our members.
