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Freedom of speech groups English PEN, Index on Censorship and Sense About Science have expressed concern about an amendment to the Defamation Bill tabled by Conservative MP Sir Edward Garnier.
According to a Guardian report, the amendment would remove a section of the Bill which forces companies to show substantial financial loss has been caused before they can sue for libel. Garnier is also asking for another clause, designed to enshrine in law the freedom to criticise local authorities, to be deleted.
Sile Lane of the Libel Reform Campaign told The Guardian that the clause asking companies to show financial damage was "modest", saying: "Opposing it will perpetuate the inhumane effects of libel bullying."
Jo Glanville, director of English PEN, said: "Companies do not have feelings, yet wealthy corporations routinely use the libel laws to silence any criticism, however slight. It is reasonable to ask companies to show financial loss before they sue. It is bizarre that the Government may not countenance even this modest restraint on corporations."
Mike Harris, head of advocacy at Index on Censorship, said: "It is indefensible that MPs are now trying to amend the Bill to continue the status quo and allow corporations to sue their citizen critics."