Government's final warning to social media companies to get listed

In Nepal, major platforms such as Meta, Alphabet (Google), X, LinkedIn, Reddit, and Snapchat were not listed.

Bhadra 13, 2082

Sajana Baral

Government's final warning to social media companies to get listed

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While American President Donald Trump is expressing his intention to retaliate by claiming that various countries are exploiting his technology companies in the name of taxes and regulation, Nepal has indicated that it will be more strict on social media platforms. The Cabinet meeting held last Monday warned that the companies that do not come to be listed within 7 days will be gradually deactivated, mainly aimed at American companies.

Despite repeated requests from the Ministry of Communication and Information Technology, major technology companies such as Meta, X, Alphabet have not shown significant interest in getting listed in Nepal. These companies have been officially registered in Nepal's tax system and have been paying regular revenue. So far, 20 international technology companies have been registered with the Internal Revenue Department and they have paid 900 million rupees in revenue in 2 years, the department said. The Ministry of Communications has been asking these companies to be listed to ensure contact persons, channels and regulations.

We have issued notices many times, except for one social media company did not come to be registered.-Prithvisubba Gurung, Minister of Communications According to the request of the government, Tiktok, Viber, Vitak, Nimbuj and Pop-up have been listed. Telegram and Global View have also submitted applications to the ministry for listing. The main anger of US President Trump is manifested on issues including Digital Services Tax (DST). Trump, who announced a tariff of only 10 percent on Nepal, has strongly criticized DST, regulation and additional rules on business in a post on Truth Social on Monday. He alleges that such a move will benefit China. 

"A country that imposes such obstacles and taxes on American technology companies will be subject to additional tariffs on its exports to the United States and will also be tightened on the trade of advanced chips," he said, "The United States and American technology companies are not subject to using the world as pawns." Last February, he ordered his trade representatives to start an investigation on countries including France, Britain, and Canada that impose DST and propose reactive tariffs.

Trump's threat is not for a country like Nepal and officials of the Internal Revenue Department say that they have not come to know of such comments aimed at Nepal so far. "We don't know that this kind of threat has come to Nepal," said Prakash Paudel, the director of the department.

Some experts on this subject have expressed their concern that even if the government's regulatory efforts are positive, the time may be unfavorable. The Ministry of Communications has issued a notification for the fifth time on Thursday asking social media platforms to be listed within 7 days. The ministry has mentioned that platforms that are not listed by August 18 will be deactivated. In Nepal, major social networking platforms like Meta, Alphabet (Google), X, LinkedIn, Reddit, Snapchat have not been listed. 

Meta company's platform users are significant in Nepal. The highest number of 14.3 million users use Facebook in Nepal. The number of messenger users under META is 10.9 million and Instagram users are 3.9 million in Nepal. According to the Ministry, despite repeated requests to list Meta and appoint a contact person and officer to hear complaints, the company is refusing.

'We have issued notices four times before, except for one social media company did not come to register,' Communications Minister Prithvisubba Gurung said while announcing the decision of the Cabinet on Wednesday, 'We had a virtual conversation with the representative of META along with the secretary of our ministry, they did not care. We have told them to come and register, give point of contact, that's it.' 

It is mentioned that the ministry has issued directives to list social media platforms in the judgment of the Supreme Court, and the government has informed them through a notification to comply with it. The Supreme Court ordered the contempt case related to 'Sidhakura.com' and directed the government to arrange registration of all domestic and foreign social networks and digital platforms before they come into operation. 

The Ministry has made it clear that individuals, companies or organizations who want to operate a social media platform in Nepal should also apply for listing according to the 'Guidelines for Managing the Use of Social Media, 2080'. Platforms will have to designate a contact person, a complaint hearing officer and a self-regulatory compliance monitoring officer in Nepal.

Sajana

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