Australia has decided not to go ahead with a plan to fine social media companies for failing to stop the spread of false information. 

The proposed law would have allowed fines of up to 5% of a company's yearly earnings but was dropped because it didn't have enough support in the country's Senate, according to a recent report by AFP.

"Based on public statements and engagements with senators, it is clear that there is no pathway to legislate this proposal through the Senate," Communications Minister Michelle Rowland said in a statement on Sunday.

As per AFP, the proposal had sparked controversy, drawing criticism from tech leaders, including Elon Musk, who previously referred to the Australian government's stance as "fascist".

While this particular bill will not move forward, Australia is still moving forward with other online safety laws. A new proposal aims to ban children under 16 from social media. If platforms don't comply, they could face fines of over US$30 million, adds the AFP report.