"Internet users will be protected from abusive bloggers and malicious Facebook postings under proposals to set up an independent internet watchdog, The Daily Telegraph has learnt."
"Under the proposals, the new internet watchdog would operate in a similar way to other industry bodies such as the Press Complaints Commission, which enforces a code of practice for the UK newspaper and magazine industry, covering accuracy, discrimination and intrusion."
Obviously the Telegraph isn't going to say this, as it is part of the conspiracy to keep the politicians in the dark about the PCC, but it does no such thing. What the PCC does is deflect calls for more formal governmental regulation of the media by pretending to regulate newspapers and magazines. If you are rich and influential you have some hope if it slapping the odd wrist but apart from that it, like any other self regulatory body is pretty toothless. Admittedly not all politicians are fooled.
The telegraph article also says "It is understood that it would also be able to order bloggers and social networking sites such as Bebo and MySpace to take down offensive messages or photographs." presumably backed up with some sort of mechanism to have court orders granted, which is fine for any site or service based in the UK but many are based overseas. The Americans have already started to backlash against our libel courts it doesn't take a great leap to see them objecting to this sort of order as well.