The Effect of Content Moderation on Online and Offline Hate: Evidence from Germany's NetzDG

Abstract

We study the online and offline effects of content moderation on social media using the introduction of Germany’s "Network Enforcement Act" (NetzDG), which fines social media platforms failing to remove hateful posts. We show that the law transformed social media discourse: posts became less hateful, refugee-related content less inflammatory, and the use of moderated platforms increased. The NetzDG also had offline effects by reducing anti-refugee hate crimes by 1% for every standard deviation in exposure to far-right social media use. The law reduced hate crimes partly by making it harder for perpetrators to coordinate, without changing attitudes toward refugees.

Keywords: Social Media, NetzDG, Content Moderation, Hate Crime, Refugees, Germany

JEL Classification: L82, J15, O38