The U.K. government is proposing to have streaming services including Netflix Inc. (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN) Prime Video self-censor content that could be considered as harmful or misinformation.
What Happened: A broadcasting bill expanding the powers of the nation’s Ofcom media regulator was presented to the U.K. Department for Digital, Culture, Media and Sport, according to a Bloomberg report. Under the new rules, Ofcom will have the power to investigate complaints about streaming content and, where applicable, levy fines of up to 5% of the streaming service’s annual sales.
The new rules come in response to the Netflix presentation “The Goop Lab” which focused on the wellness brand promoted by actress Gwyneth Paltrow. A chief of the U.K.’s National Health Service criticized the production for serving up “misinformation.”
While Netflix stated “The Goop Lab” was “designed to entertain, not provide medical advice,” under the new rules, this complaint would accuse Netflix of spreading “unchallenged health claims.”
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What Happens Next: Prior to this update, Ofcom rules only applied to linear television channels — except for BBC iPlayer, as video on-demand services are not under regulatory oversight. The U.K.’s public service broadcasters lobbied for years to have streaming services operated under the regulations that govern their content.
"Today, we are giving British broadcasters the backing and support they need to rule the airwaves for years to come,” said Culture Secretary Nadine Dorries. "Set against the backdrop of the digital transformation of our viewing habits, today's plans will revamp decades-old laws to help our public service broadcasters compete in the internet age."
Photo: Gwyneth Paltrow and Elise Loehnen in "The Goop Lab," courtesy of Netflix
