Regulatory Shift: From Intermediary to Service Provider
The Indian government is preparing to reclassify Meta from an 'intermediary' to a 'service provider,' a significant legal shift that would strip the tech giant of the liability protections it has long relied upon. According to government sources, this change is driven by the evolving nature of Meta's business model, which involves active curation and distribution of content through paid algorithms.
"They charge for algorithms, so they can’t be intermediaries," a source stated. The government’s position is that by operating systems that determine how content is recommended and amplified, Meta has moved beyond merely hosting or transmitting user-generated content. Consequently, the company must accept greater responsibility for the material distributed through its platforms.
Legal Implications and Liability
The core of this regulatory move is the removal of intermediary immunity. Under the existing legal framework, platforms acting as intermediaries are generally shielded from liability for user-generated content, provided they comply with certain due diligence requirements. However, sources indicate the government believes Meta should no longer be able to claim this immunity.
"We believe they will not have immunity as an intermediary. So that liability removal is a big thing they were enjoying since then," the sources said. By treating Meta as a service provider, the government intends to impose direct responsibilities for content moderation and safety, aligning with the view that "any service provider in the world has some responsibility."
Context: Scrutiny Over Child Safety
This regulatory tightening comes amid intense scrutiny of Meta following allegations regarding the promotion and circulation of child sexual abuse material (CSAM) on its platforms. In response to these allegations, Meta has acknowledged that "we have made mistakes" and indicated it would report child abuse material to the authorities.
The government is also looking at how other jurisdictions, particularly the United States, are approaching platform responsibilities. Officials pointed to Meta’s commitments in the US to remove harmful or addictive material, including content linked to suicide, as a benchmark for the level of responsibility expected of large technology platforms in India.
Broader Policy Direction
The move reflects a broader policy view that different players in the digital ecosystem—those creating, recommending, amplifying, or distributing content—must have clearly defined responsibilities. The government is moving away from a one-size-fits-all intermediary model toward a framework where liability is tied to the degree of control and commercial interest a platform has in content distribution.
"Different players must take responsibility of the content," the sources emphasized, signaling a potential overhaul of how large tech companies are regulated in India.