Management Criminal Liability Undermines Safe Harbor

This provision creates criminal liability for tech company officers and managers who "ought reasonably to have known" about offences and failed to take "all reasonable steps" to prevent them. This directly contradicts the safe harbor protection in 77, which shields intermediaries from liability for third-party content. While platforms are protected from strict liability, their management faces imprisonment for failing to prevent user violations of vague offences like misinformation or hate speech. This forces companies to implement aggressive monitoring systems, creates barriers to entry for startups that cannot afford compliance infrastructure, and incentivizes over-moderation that stifles user expression and innovation.