In last trading session, tech giants faced bearish trends after Australian regulator sent legal letters to Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Facebook owner Meta Platforms Inc. (NASDAQ:META) demanding the methods they take to remove child abuse content from their platforms or risk fines.
Shares of Microsoft Corporation (MSFT) dropped over 1% to close at $265.23 while gain back 1.46%in pre trading session on Tuesday as Apple Inc. (AAPL) decreased 1.37% to close at $161.38 while surged 1.02% in pre session, and Meta Platforms Inc. (META) plunged over 1.6% to close at $159.17 and jumped over 1.5% in pre trading session.
The threat underscores Australia’s hardline approach to regulating Big Tech firms since 2021 which has so far included laws forcing them to pay media outlets for displaying their content and laws making them hand over details of anonymous accounts which post defamatory material.
Internet service providers are already facing pressure from governments throughout the globe to develop a solution to monitor encrypted messaging and streaming services for child abuse content without violating user privacy.
The commissioner Julie Inman Grant stated in a statement that this activity is no longer confined to hidden corners of the dark web however, it is common on the popular platforms that our children and we utilize every day.
She added, “As more companies move towards encrypted messaging services and deploy features like livestreaming, the fear is that this horrific material will spread unchecked on these platforms.”
A Microsoft (MSFT) spokesperson confirmed that the business had received the letter and intended to react within 28 days. Microsoft is the owner of the video calling service Skype.
Despite still analyzing the letter, Meta, which also owns the messaging app WhatsApp, continued to “proactively engage with the eSafety Commissioner on these vital topics,” according to a company representative.