The proposed legislation, named the Online Safety Bill, aims to protect people from illegal or harmful content.
Failure to comply could lead to massive fines, services being blocked, or even jail terms for executives.
Campaigners have long been alarmed about the threat toprivacyand free speech.

They now believe the rules could be unlawful.
In a newlegal opinionpublished today, experts warned that the clause may breach international law.
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The legal advice was provided to the Open Rights Group by barristers fromMatrix Chambers.
Furthermore, there are no provisions for explaining the restriction to users.
It is yet another example of the government expecting Parliament to pass a law without filling in the detail.
Surveillance in the guise of safety?
The legal opinion arrives amid a fierce backlash against the bill.
One of the biggest critics is Wikipedia, which reportedly could withdraw from the UK over the rules.
As a result, the online encyclopedia may be blocked.
Some lawmakers have called for an exemption forpublic goods services such as Wikipedia.
Wales is also concerned about the laws threat to encryption, which has alarmed messagingapps.
Signalwarnsthat plans to access end-to-end encrypted messages threaten privacy and safety.
Element, another communications platform, goes a step further.
The companysaysthe legislation is not an Online Safety Bill; it is an Online Surveillance Bill.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).