In a statement issued on Monday, the Federal Office of Justice said that the messaging app has failed to set up a complaints management system, and has not named a person in Germany authorized to receive information requests from law enforcement authorities.
Germany’s Network Enforcement Act, also known as NetzDG, obligates social media platforms to set up a complaint mechanism, and take action against hate crimes, fake news, and criminally punishable content on their platforms.
The Federal Office of Justice said despite several attempts to deliver official documents to Telegram's headquarters in Dubai, and legal assistance from authorities in the United Arab Emirates, it could not get a positive response from the messaging platform.
Telegram must now pay a €4.25 million fine for not initiating a complaints management system, and €875,000 fine for not naming a person in Germany authorized to receive requests, the federal office said.
Germany’s Justice Minister Marco Buschmann has welcomed the punitive measure against Telegram.
"Our laws apply to everyone,” he said in a statement and slammed the Dubai-based messenger service for not complying with the law.
“You cannot evade legal requirements and your responsibility by trying to be unreachable. I'm glad that our commitment has brought us one step further,” he added.