Facebook, Twitter, Google, Apple, Microsoft, Amazon and other tech giants have urged the European Union for more liability protection to help them tackle illegal content and hate speech. Edima, an association that represents the companies, argued stronger protections would result in “better quality” moderation by companies of user-generated content.
As things stand, those companies do have liability protection under EU rules, as long as they don't have "actual knowledge" of hate speech or illegal content on their platforms. Once such material becomes known to them (such as when it's flagged by a user), they have to remove that content quickly. According to Bloomberg, the companies are concerned that if their own systems detect harmful or illegal content, that could be considered as them having "actual knowledge" and make them liable for that material.