The digital landscape in Nepal is undergoing a significant transformation. The government of Nepal has recently introduced new regulations aimed at overseeing social media platforms operating within the country. This move, encapsulated in the ‘Directives for Managing the Use of Social Networks 2023’, marks a pivotal shift in the regulation of digital platforms.

At the heart of these directives is the requirement for social media platforms like Facebook, TikTok, X (formerly Twitter), Linkedin, Youtube, WhatsApp, Messenger, WeCHat and others to enlist with the Nepalese government. This mandatory enlistment, to be completed within three months from 10th November 2023, is a critical step for these platforms to continue their operations in Nepal. The enlistment process involves not only listing with the government but also obtaining a certificate of enlistment that must be renewed every three years. Non-compliance could lead to the closure of unlisted platforms.  

To streamline the enlistment and regulation of the enlisted social network platforms, a ‘Social Network Management Unit’ will be established within the Ministry of Communication and Information Technology. This unit will oversee the registration and renewal processes, ensuring that the platforms align with the new regulatory framework.

Furthermore, the directives stipulate that social media companies must set up their offices in Nepal or appoint a focal person to manage local operations and address user concerns. This move is expected to facilitate quicker and more effective resolution of issues related to objectionable content and user grievances. Representative office (liaison office) as per the provisions of Company Act, 2063, may be the ideal entity structure for these global companies to set up their offices in Nepal. 

Here are the major registration and compliance requirements for the social network platforms operating in Nepal:
1. Registration with the Government: Social media platforms operating in Nepal are required to formally register with the Ministry of Information and Communication Technology. This step is vital for legal recognition and operation within the country.

2. Local Office Establishment: The regulations mandate these platforms to establish a physical presence in Nepal. This could be through setting up local offices or appointing a designated focal person within Nepal. This requirement aims to facilitate direct communication and management of local user concerns.

3. Content and User Conduct Guidelines: The directive includes a detailed not-to-do list for social media users and platforms. This list covers prohibitions on fake IDs, hate speech, and content promoting illegal activities like child labor, human trafficking, and polygamy. It also bars the use of derogatory language or images, spreading false information, and posts that could incite violence or disrupt social harmony.

4. Regular Updates and Compliance: Social media platforms must regularly update their registration information every three years. This includes changes in the contact center's address or the officer handling complaints, ensuring up-to-date communication channels with the government.

5. Content Moderation and Removal: Platforms are required to establish mechanisms to promptly identify and remove content that violates the guidelines. This must be done within a specified timeframe, usually within 24 hours upon receiving a complaint.

6. Grievance Handling: A contact center within Nepal, staffed with designated officers for complaint management and self-regulation, is necessary. This center is responsible for addressing user grievances and ensuring compliance with the directive.

7. Data Protection and Security: Platforms are expected to maintain high security standards to protect users' private information and prevent its unauthorized use or public disclosure.

8. Alignment with Local Laws and Social Norms: The platforms must respect and align with the social norms and values of Nepal. This includes refraining from content that can disrupt social harmony or contradict local cultural values.

9. Financial Transaction Regulations: Social media operations involving financial transactions must facilitate these through the banking system, adhering to the legal financial framework of Nepal.

10. Fact-Checking and Compliance with 'Santa Clara Principles': The platforms are required to employ fact-checking measures and comply with the Santa Clara Principles, which focus on transparency and accountability in content moderation practices. 

The directives also include a comprehensive 19-point list of prohibited actions for users. These range from the creation of fake IDs to the posting of content that incites hatred or violence. The directives take a stern stance against content that disrupts social harmony, with a clear intent to curb misuse and promote responsible use of social networks.

Amidst these changes, concerns have been raised by free speech advocates. They argue that the directives, while well-intentioned, may overstep the bounds of the Electronic Transactions Act and could potentially curb freedom of expression. This concern is amplified by the ambiguous definitions used in the directive, which could lead to varying interpretations and enforcement challenges.

The directives also call for a judicial approach in removing offensive content, emphasizing the need for legal frameworks to regulate social media effectively. This approach is seen as essential to balance regulatory objectives with the preservation of free speech and expression.

Despite these concerns, there is an acknowledgment that social media should be regulated to prevent its misuse. However, the approach to regulation needs careful consideration to avoid outright censorship or suppression of legitimate digital expression.

In conclusion, the new directives on social media in Nepal represent a significant step towards regulating digital platforms. While they aim to foster a responsible and secure online environment, the challenges of implementation and potential impact on free speech remain areas of active debate. As Nepal navigates this new digital terrain, the balance between regulation and freedom will be key to shaping its social media landscape.

Khatapana's Role in Ensuring Compliance

In this evolving regulatory landscape, Khatapana emerges as a pivotal partner for social media networks. Our expertise in legal and regulatory compliance positions us to offer unparalleled support in navigating these new guidelines.

• Legal Consultation: Khatapana provides expert legal advice on complying with the directives while safeguarding user rights and platform integrity.
• Strategic Planning: We assist in setting up local offices and appointing representatives, ensuring seamless operations within the new regulatory framework.
• Content Monitoring Solutions: Our team offers solutions for effective content monitoring, ensuring adherence to the not-to-do list and content regulations.
• Technology Compliance: We guide platforms in aligning their algorithms and security measures with the directive's requirements, particularly regarding user data protection and content dissemination control.
• Advocacy and Liaison: Khatapana liaises with government units, helping platforms address grievances and comply with the Social Network Management Unit’s requirements.

Call to Action

Social media platforms operating in Nepal face a critical period of adaptation and compliance. Khatapana is here to ensure that this transition is smooth, legally sound, and innovative. Contact us to explore how our services can assist in navigating these new regulations and turning them into opportunities for growth and responsible digital citizenship.