The Social Media Bill 2025: Provisions, Penalties & The Withdrawal (Analysis)

The Social Media Bill 2025 (Social Media Regulation Act 2081) has been the single most debated piece of legislation in Nepal’s digital history. Introduced to “regulate and systematize” online platforms, it sparked nationwide protests due to its strict control mechanism.

As of February 4, 2026, reports indicate the bill has been withdrawn following intense public pressure. However, understanding what was proposed is crucial, as regulators may re-introduce versions of these rules in the future.

Key Provisions that Sparked Outcry

The bill aimed to bring every social media platform—from Facebook to TikTok—and every user under strict state surveillance.

1. Mandatory Registration for Platforms

• The Rule: Any social media company wishing to operate in Nepal (Facebook, X, Instagram, TikTok) was required to register with the Ministry of Communications and conduct annual renewals.
• The Penalty: Operating without registration attracted fines up to NPR 2.5 Million ($18k) and a potential ban.
• Office Requirement: Companies were forced to establish a local office or appoint a Point of Contact (PoC) in Nepal to handle government takedown requests.

2. The End of Anonymity (Fake IDs Illegal)

Section 47 of the Electronic Transactions Act was already controversial, but this Bill went further.

• Creating a “Fake ID” or using a pseudonym to deceive others was CRIMINALIZED.
• Punishment: Up to 3 months in jail and NPR 50,000 fine for simply running a page under a fake name if deemed deceptive.

3. Broad Definitions of “Hate Speech”

The bill proposed up to 5 years in jail and NPR 500,000 fines for content that:

• “Disrupts social harmony”
• “Adversely affects national sovereignty”
• “Incites hate or enmity” Critique: These terms were undefined, giving authorities broad power to arrest critics of the government under the guise of “harmony.”

Why Was It Withdrawn?

The withdrawal on February 4, 2026, came after what observers call the “Gen Z Protests.”

1. Overreach: The ban on 26 platforms in late 2025 alienated the youth demographic.
2. Economic Impact: Thousands of small businesses operating on Instagram and Facebook feared platform bans would destroy their livelihoods.
3. Freedom of Expression: Legal experts argued the bill violated Article 17 of the Constitution (Freedom of Opinion).

The Previous “TikTok Ban” Context

This bill was the legislative successor to the 2023/2024 TikTok Ban. While the ban was eventually lifted, the government sought a legal framework to enforce such bans more easily. The failure of this bill suggests that blanket bans and licensing regimes for the open internet are becoming politically impossible in Nepal.

What Now for Users?

With the bill withdrawn, the Electronic Transactions Act 2063 (Section 47) remains the primary law producing arrests for online content.

• Defamation is still a crime: You can still be arrested for libel online.
• Cyberbullying is punishable: Harassment laws still apply.

Legal Advice: While the “Fake ID” jail term is off the table for now, police continue to track anonymous users in serious cases of fraud or harassment using IP logs from ISPs.