The internet and online social media in particular are giving people unprecedented ability to express their views and share information with others. On the other hand the truth of what people say online and the sheer volume of information are hard for most people to handle. In Germany the government has introduced the Net Enforcement Law which prohibits certain kinds of online speech (e.g. incitement to hatred). Social media firms have 24 hours to check and remove suspect posts reported by users or face huge fines. Use the theories of market failure and government intervention to explain the reasons for Germany's new law. Critically discuss potential problems with this intervention.

12.5 marks worth of answers