* Bill aims to establish digital regulator to establish

safety standards for AI chatbots

* Companies could face penalties of 3% of global revenue or

up to C$10 million

* Some European nations also implementing or considering

social media bans for children

By Maria Cheng

OTTAWA, June 10 (Reuters) - The Canadian government

introduced a new digital safety bill on Wednesday that would ban

social media for children under 16 with exemptions for platforms

that meet certain safety standards, months after Australia

enacted the world's first social media ban for young people.

The bill also aims to make AI chatbots safer by setting up a

digital regulator to establish safety standards, a government

official said.

Companies could face penalties of 3% of global revenue or up

to C$10 million ($7.2 million), whichever is more, for failing

to comply.

"Social media platforms and AI chatbots are designed to

capture attention. They do not support healthy childhood

development and have become a source of anxiety, isolation,

depression and a range of other mental health challenges for

many young Canadians," said Marc Miller, Minister of Canadian

Identity and Culture and Minister.

"This legislation will provide a safer environment for young

Canadians and empower them to connect in-person, build

friendships, focus in school, and learn real-world skills so

they can thrive."

The bill's introduction in Parliament comes weeks after families

affected by one of the country's worst mass shootings sued

OpenAI, alleging that the company knew the alleged killer was

planning the attack on ChatGPT but did not warn police.

OpenAI did not immediately respond to a request for comment.

In December, Australia became the world's first country to ban

social media for children under 16. A month after its law was

introduced, social media companies collectively deactivated the

accounts of nearly 5 million teenagers.

Government officials in a technical briefing said it could take

a year for the bill to pass and 18 months to set up the digital

regulator once it does.

A spokesperson for Google, which owns YouTube, said

the company is committed to working with the federal government

to establish higher safety standards for all platforms, so

parents have the confidence and control to choose better, safer

online experiences for their children.

Meta, which owns Instagram and Facebook, and Elon

Musk's X, formerly Twitter, and Snapchat, did not

immediately respond to a request for comment.

France, Denmark and Poland are also considering tightening

rules around social media use for children, while Greece in

April announced it would ban access to those under the age of 15

from January 2027.

Prime Minister Mark Carney has a slim majority in Parliament,

which is due to break for summer recess soon.

Brett Caraway, an associate professor at the University of

Toronto who focuses on technology and privacy, said Canada's

proposal would be more comprehensive than the Australian law.

"The Canadian proposal would entail a more complex set of

platform obligations and (re)designs. Its aim is a redesign of

the social media ecosystem to make it safer for children whereas

Australia's law is about restricting access to the ecosystem,"

he said.

"The scope is also broader since the Canadian law would

tackle AI as well."