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Centre’s New Fact-Checking Unit Sparks Startup Concerns

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On Wednesday, March 20, the Centre issued a notification regarding the establishment of a fact-checking unit (FCU) under the recently amended Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. The FCU is tasked with monitoring all online content related to the government.

The notification designates the Fact Check Unit under the Press Information Bureau of the Ministry of Information and Broadcasting as the official fact-checking unit of the Central Government. This move falls under the provisions of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.

The timing of the notification is notable, as it precedes a scheduled hearing in the Supreme Court on Thursday regarding a petition challenging the Bombay High Court’s March 13 decision. The HC had refused to restrain the Centre from notifying the FCU.

The IT Rules were amended by the Centre in August 2023, introducing a provision to establish the FCU under the Ministry of Electronics and Information Technology. The unit’s primary objective is to identify and address “fake or false or misleading” online content concerning the business of the union government.

This initiative has been in development since 2019 when the Press Information Bureau initially announced plans to establish the FCU. However, the Centre’s decision to implement the FCU has been met with controversy.

Critics argue that the amended rules lack clarity regarding the actions digital intermediaries should take when content is flagged by the FCU. Reports suggest that platforms may be required to label content as “fake” or “misleading” and remove it entirely.

Another contentious provision mandates online platforms to prevent users from sharing any misinformation concerning the government. Following the amendment of the rules, comedian Kunal Kamra, the Editors Guild of India (EGI), and the Association of Indian Magazines challenged them, citing violations of the right to freedom of speech.

The Bombay High Court delivered a split verdict on the matter, eventually referring it to a third judge who rejected the petitions. The case was then referred back to a division bench for further consideration.

Despite ongoing legal proceedings, the HC, on March 13, effectively permitted the Centre to notify the FCU, pending a final decision. Subsequently, the EGI and Kamra approached the Supreme Court, filing a special leave petition (SLP) challenging the Bombay HC’s decision not to grant a stay on the establishment of the FCU.

The petition before the SC raises concerns about potential conflicts of interest, as a government entity would be responsible for fact-checking content related to the Centre.

Additionally, the implementation of the FCU may have implications for startups, particularly those operating in the digital space. Startups heavily rely on online platforms and social media for marketing and brand visibility. The requirement to adhere to strict guidelines on content related to the government could pose challenges for startups in terms of navigating compliance and potentially facing restrictions on their digital presence.

As the legal battle unfolds, stakeholders, including startups and digital intermediaries, await further clarity on the implications of the FCU and its potential impact on the digital landscape in India.

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