The proposed legislation outlined sweeping powers to fine tech companies up to five percent of their yearly turnover if they breached new online safety obligations.
Communications minister Michelle Rowland said she had dumped the bill after running into significant opposition in the country’s senate.
“Based on public statements and engagements with senators, it is clear that there is no pathway to legislate this proposal through the senate,” she said in a statement.
The proposed bill notably drew the ire of tech baron Elon Musk, who in September likened the Australian government to “fascists”.
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Australia has been at the forefront of global efforts to regulate the tech giants.
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The government will soon roll out a nationwide social media ban for children under 16. Social media companies could be fined more than US $30 million if they fail to keep children off their platforms, under separate laws tabled before Australia’s parliament on Thursday.
