Australia has pulled back its plans to impose fines on social media companies failing to tackle misinformation.

Australian communications minister Michelle Rowland announced this decision following significant resistance in the senate.

The draft legislation had suggested penalties of up to five percent of annual revenue for tech firms violating the proposed online safety rules.

Rowland said the proposal lacked sufficient support to pass through the senate.

The bill faced criticism, notably from Elon Musk, who likened the government’s move to authoritarian tactics.