Nepal’s regulation of social media has historically been fragmented and largely ineffective, relying on a variety of legislation that were not designed to target the unique problems and opportunities of social media. The first such legislation that partly affected social media was the Electronic Transactions Act (ETA) 2063 BS (2008 AD) . Originally intended to formalize digital transactions during the era of dial-up internet and early platforms, like Hi5, Skype and MSN Messenger, the ETA also provided a legal basis for addressing cybercrimes. Later, the Individual Privacy Act 2075 BS (2018 AD) and the National Penal Code addressed issues like defamation and cyberbullying but failed to comprehensively regulate social media.
All this changed in 2019 when the government proposed an IT Bill which mandated platform registration for social media companies and stringent rules for social media users. Ultimately, however, the bill was shelved due to massive backlash for its ambiguous language that was seen as a measure to restrict freedom of speech. Following this, in November 2023, the Cabinet enacted the ‘Directives for Managing the Use of Social Networks, 2023’ under Section 79 of the ETA, providing a roadmap for social media legislation. The directive mandated registration and content moderation, ultimately even leading to TikTok’s ban due to its alleged role in political mobilization and social conflict.
Against this backdrop, on January 29, 2025, the Minister for Communication and Information Technology (MoCIT), Prithvi Subba Gurung, tabled the Social Media Bill 2081 BS (2025 AD) in the National Assembly. Largely triggered by the TikTok ban which highlighted the inadequacy of existing laws to address the rapid evolution of social media and its threats to national security, public order, and societal values, the new bill is a slightly reworked version of the IT Bill proposed in 2019. It aims to regulate social media platforms and users through mandatory registration, strict penalties, and content moderation. If passed by both houses of Parliament and authenticated by the President, the bill will become law.
The Social Media Bill has mostly two parts to it – one that affects social media platforms and the other that affects social media users. This article dives into the key highlights, outlining the major provisions and implications of the regulations based on this division.
Regulations for Social Media Platforms
The primary regulation for social media platforms under the proposed framework is that all social media platforms wanting to operate within Nepal must register and obtain government approval before they can function legally. Companies, firms, or organizations already listed with the MoCIT must submit an application within six months of the enactment of this law. Failure to register will result in fines of up to NPR 2.5 million, as per Section 17(2).
In addition to registration, the proposed Act enforces strict content regulation policies. According to it, authorities will have the power to instruct relevant platforms to remove content deemed unsuitable for dissemination in accordance with prevailing laws. To facilitate this, social media platforms must have a designated point of contact (PoC) who reports to the government. If the PoC fails to remove flagged content upon instruction by relevant authorities, fines ranging from NPR 500,000 to NPR 1.5 million may be imposed under Section 13(4). Furthermore, if any individual suffers damages due to harmful content not removed by social media platforms, they must be compensated as per Section 13(5).
Moreover, to ensure an effective grievance-handling mechanism, licensed platforms are required to establish a rapid response team dedicated to managing social media complaints. As part of this, an officer must be available 24/7 to address user concerns, as mandated by Section 13(5).
Regulations for Social Media Users
Reactions to and Implications of the Social Media Bill
The introduction of the Social Media Bill (2025) has faced a variety of reactions, especially a lot of criticism. While the government and its supporters see it as a necessary measure to combat cybercrime, misinformation, and hate speech, critics and members of the civil society have argued that its vague terminology and stringent provisions for social media users pose a serious threat to freedom of expression. For example, in terms of ‘Violations Against National Security, Integrity and Hate Speech Concerns’, national security, integrity, and hate speech are not well-defined terms and could present avenues of stifling free speech. Moreover, the privacy risks from banning anonymous accounts, and the risk of misuse against dissenters have also fueled opposition. Civil rights groups, the Rastriya Swatantra Party (RSP), and a large section of Nepal’s media and youth have called for the bill’s withdrawal, warning that the bill could undermine democracy and digital rights. However, officially, no opposition party has formally opposed the bill in the upper house, despite publicly criticizing the bill.
While the criticisms of the bill have centered around its implications for social media users, critics have also raised concerns about the potential deterrence of global platforms due to strict registration requirements. As per already existing laws, Nepal has implemented various taxation measures to regulate digital services while ensuring foreign companies contribute fairly to the economy. According to section 20 of the Finance Act 2079 (2022), a 2% Digital Service Tax (DST) was enforced on non-resident digital service providers, while amendments to the Value Added Tax Act 2052 (1996) require global platforms exceeding the annual transaction threshold to register with the Inland Revenue Department (IRD), issue tax invoices, and collect a 13% VAT. These measures have led to significant revenue for the government as, in FY 2080/81 BS (2023/24 AD) alone, 18 registered firms paid NPR 358.44 million in VAT and NPR 58.18 million in electronic service tax, bringing the total digital tax revenue to NPR 416.71 million, resulting from global technology companies’ annual turnover of NPR 3 billion. Thus, the stringent rules proposed on social media platforms has raised significant concerns regarding its impact on reducing this substantial revenue for the government.
As Nepal navigates these regulatory changes, striking a balance between necessary oversight and preserving digital freedom remains a contentious issue. With the Social Media Bill sparking strong reactions from various stakeholders, its future will likely depend on public discourse and political negotiations within the National Assembly. Ensuring that the bill does not impede global platforms’ operations or deter their continued presence in Nepal and does not hamper freedom of speech will be crucial in shaping the country’s digital landscape for years to come.
Sanjit Tuladhar is a beed at beed Management and a Research Associate with Nepal Economic Forum (NEF). Sanjit holds a Bachelor’s in Business Studies from Tribhuvan University and is in the final stages of completing his Master’s in the same field. His work focuses on delivering actionable insights through strategic initiatives and dynamic sectoral studies that drive sustainable economic growth in Nepal and beyond.
