What If Social Media Gets Banned in Nepal? Why Tech Giants Are Ignoring the Call to Register

On March 20, the Government of Nepal warned that major social media platforms like Facebook, Instagram, and X (Twitter) will be blocked if they do not register in the country within a month.

Since the companies haven’t responded, the government’s 15-day ultimatum issued on April 20 ends today.

As part of the Social Media Bill 2081, the Government of Nepal has laid out two key components that tech companies and social media users must adhere to. These regulations cover rules for tech companies operating within the country and guidelines for social media users.

Rules for Tech Companies Operating in Nepal

Social media platforms must follow several guidelines if they are to continue operations in Nepal. Some regulations outlined by the Social Media Bill 2081 are:

1. Do not post or spread content on social media that harms: Nepal’s sovereignty, national integrity, national security, national unity, independence or dignity, social, cultural, or religious harmony.

2. Do not post or share anything that violates existing laws.

3. Do not allow content that seriously attacks someone’s character, spreads hate speech or incites violence.

4. Ensure protection of users privacy and intellectual property rights, unless required by law.

5. Allow social media use only with verified identity of the user.

6. Provide user data (URL, ID, etc.) to relevant authorities for investigation as per the law.

7. If any content is found to violate this Act or existing laws, or if there is a complaint or report about such content, the concerned department will investigate the issue.

8. If the investigation finds the content should be removed, the department will instruct the licensed person or their Nepal-based representative to remove the content either temporarily or permanently, fully or partially.

9. Once instructed, the licensed person or representative must immediately remove the content from the platform.

10. If they fail to remove the content after being instructed, the department can fine them between NPR 500,000 to NPR 15,00,000.

11. If someone suffers damage or harm because the content was not removed as required, they must be provided with appropriate compensation.

12. Any licensed person (company) operating social media from outside Nepal must set up a contact person or office in Nepal to handle complaints and communication.

Rules Social Media Users Must Follow:

1. Do not post or share anything that insults, defames, or harms someone’s dignity. This includes abusive language, hate speech, or offensive videos or images. Hate speech refers to any content—like posts, comments, live streams, tags, or mentions—that spreads hate, violence, or disrupts social harmony.

2. You must not post, share, like, repost, live stream, subscribe, comment, tag, hashtag, or mention anything listed above with bad intentions.

3. If any user breaks these rules, the concerned authority may fine them up to Rs. 500,000.

4. No person shall commit cyberbullying using social media.

5. No person shall commit or cause to commit cyberstalking using social media.

6. No one shall hack anyone’s ID or information using social media.

7. No person shall conduct phishing or imposter scams using social media.

8. No person shall commit sextortion or extortion through social media.

9. No person shall post or share obscene pictures, audio, or video on social media.

Detailed social media bill 2081:

AIC’s Response to the Bill

The Asia Internet Coalition (AIC) is an industry association that represents major global internet and technology companies such as Google, Meta (Facebook), Amazon, Apple, X (Twitter), and others. AIC works to promote responsible internet policies and support digital innovation across Asia.

Before the Social Media Bill 2081, the AIC sent three letters to Nepal’s Minister for Communication and Information Technology, Rekha Sharma, asking for changes to the draft bill. The letters were sent in December 2023, February 2024 and March 2024.

In its letters, AIC has included more detailed objections, highlighting the following key concerns:

1. Vague and Broad Definitions:
The bill and directive use unclear terms to define illegal content, leaving room for misuse and overreach.

2. No Legal Protection for Platforms:
There’s no clear legal shield (safe harbour) protecting platforms for user-generated content.

3. Unclear Process for Content Removal:
The Ministry can order content takedowns without notice or explanation. Platforms have no way to challenge it.

4. Fast Response Time:
Platforms must take down content within 24 hours of a takedown request, which may be too short for proper review.

5. Overlap of Government Powers:
Too many agencies are involved, which may create confusion and inconsistent enforcement.

6. Unfair Rules for Users:
Users are expected to follow unclear and strict conditions, limiting free expression.

7. Applies Outside Nepal:
The law affects people outside the country if Nepali citizens are offended—difficult to enforce internationally.

8.Proactive Content Filtering:
Platforms must prevent illegal content from being posted in advance, which is not realistic for most services.

9. Impact on Investment:
The current bill and directive could scare away international companies and slow down Nepal’s digital growth.

AIC letter on feb, 2024

AIC letter on march, 2024

Huge Loss for Businesses and IT Sector

Many businesses in Nepal — from small shops to large companies — rely heavily on Facebook and Instagram ads to reach customers. If these platforms are banned businesses won’t be able to run ads, leading to a sharp drop in sales, digital marketers and ad experts will lose clients and income, causing a chain reaction across the IT industry, jobs in digital marketing, design, and content creation could be lost.

Impact on Communication

People in Nepal mostly use Facebook and Instagram to communicate — whether it’s with friends, customers, or communities. Without these platforms communication will be slower and less effective, important public announcements — like those from Nepal Police or local authorities — won’t reach the people as fast, families and businesses who use Messenger or Instagram DM for daily communication will face challenges.

Loss of Income for Creators and Influencers

There are hundreds of Nepali influencers who make a living by promoting products on Instagram. Many of them earn lakhs of rupees per month. If Meta platforms are banned, they’ll lose their main income source overnight. This will also affect the brands who depend on influencers to reach new customers.

Real People, Real Impact

This isn’t just about big companies — small business owners will suffer too: Prakash Aryal, a plumber from Maharajgunj who recently opened his own shop, said he expects more than 60% loss if Meta platforms are banned. Raajdeep Bartaula, who runs a resort at Sukute Beach for over 15 years, said he’ll face at least a 30% loss. New guests often find the resort through Facebook or Instagram, and without these, he’ll have to rely only on referrals and travel agencies, which is not sustainable.