BORIS Johnson has been accused of giving racism "the green light" following the abuse aimed at England football players.
The Prime Minister was criticised in the Commons for failing to condemn those who booed footballers for taking the knee against racism.
He said the UK Government will crack down on social media companies and change football banning orders in England to cover online racism.
During Prime Minister's Questions, UK Labour leader Sir Keir Starmer highlighted the "disgusting" racist abuse aimed at England players.
Mr Johnson said: "I utterly condemn and abhor the racist outpourings that we saw on Sunday night."
He said ministers had "made it absolutely clear that no-one should boo the England team".
The Prime Minister told MPs the Government is taking action, adding: "In addition to changing the football banning order regime, last night I met representatives of Facebook, Twitter, TikTok, Snapchat, Instagram, and I made it absolutely clear to them that we will legislate to address this problem in the Online Harms Bill.
"And unless they get hate and racism off their platforms they will face fines amounting to 10 per cent of their global revenues - we all know they have the technology to do it."
Mr Johnson rejected a call by Labour leader Sir Keir Starmer to condemn Home Secretary Priti Patel after she dismissed the England team's actions in taking the knee at the start of matches as "gesture politics".
He said: "The Home Secretary has faced racism and prejudice all her career of a kind he can never imagine.
"And she has taken practical steps to get black and minority officers in record numbers."
Sir Keir accused the Government of trying to "stoke a culture war", only to realise that it was on the wrong side.
He said: "Why else would a Conservative MP boast that he's not watching his own team?
"Why else would another Conservative MP say that Marcus Rashford spends too much time playing politics when he's actually trying to feed children that the Government won't?
"And why will the Prime Minister refuse time and time again - even now - to condemn those who boo our players for standing up against racism?
"What is it that this England team symbolises that this Conservative Party is so afraid of?"
Mr Johnson said the whole House of Commons is "united" in admiration for the England team, adding: "We stick up for them and what we're doing is taking practical steps to fight racism - changing the football banning regime, fining the online companies, and we will use more legislation if we have to - just as we used the threat of legislation to stop the European Super League.
"I don't want to engage in a political culture war of any kind, I want to get on with delivering for the people of this country."
Sir Keir replied: "He doesn't want to engage in a culture war and point-scoring? Give me a break.
"Football's a game, racism isn't, Prime Minister. That's why many of us have been involved in the charity Show Racism the Red Card for years.
"But far from giving racism the red card, the Prime Minister gave it the green light.
"And I'll tell you the worst kind of gesture politics - putting on an England shirt over a shirt and tie whilst not condemning those booing is the worst kind of gesture."
SNP Westminster leader Ian Blackford congratulated the England team for reaching the final.
But he added: "The tragedy of the tournament was the undercurrent of racism that was ultimately targeted at three young men - Rashford, Sancho and Saka."
He quoted comments by Mr Johnson in an old newspaper column.
He said: "Wherever there is racism, it falls on all of us to face it down and to call it out.
"It is shameful that it took until last night for the Prime Minister to meet with the main social media companies and finally wake up to the fact that those who publish and promote vile racist online abuse need to be faced down and sanctioned.
"So can the Prime Minister tell us what sanctions he thinks would be appropriate for someone who published racist content – and it's shocking even to have to say this out loud – describing Africans as 'flag-waving piccaninnies' with 'watermelon smiles'?"
Mr Johnson said: "I have commented many times about the words that I've said in the past, and I think the House understands how you can take things out of context."
Earlier, Conservative former minister Steve Baker warned the party needed to change its attitude towards people who take the knee.
He said the controversy which erupted after the Euro 2020 final at Wembley should serve as a "wake-up call" over how it was seen in the rest of the country.
Marcus Rashford, Jadon Sancho and Bukayo Saka were subjected to a torrent of racist abuse on social media after they failed to score in the penalty shoot-out against Italy on Sunday.
That in turn prompted an outpouring of support for the trio, with hundreds of fans gathering to leave messages at a mural of Rashford in Manchester after it was defaced by vandals.
Meanwhile, England player Tyrone Mings accused Ms Patel of having stoked the fires of racism with her previous comments.
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