Australia’s Social Media Rules Trigger a US-Australia Tussle
Synopsis
Australia’s social media reforms are testing relations with Washington as the government proposes new rules for algorithmic feeds. Users aged 16 and over could opt out of recommendations, while platforms face potential fines of A$109.2 million. The measures build on Australia’s broader online-safety framework.
Australia's social media regulatory overhaul has led to new tensions with Washington, with the White House condemning proposed rules that would penalize social media platforms and impose restrictions on algorithmic feeds.
The Labor government says the Australia social media reforms are meant to empower users to control what is put in their timelines and platforms to tackle harmful content. Social media sites could face fines of up to A$109.2 million if they do not comply with the regulations.
Algorithm Rules Put Canberra and Washington at Odds
Under the proposed Digital Duty of Care legislation, Australians aged 16 and over would be able to opt out of algorithmically recommended feeds and choose feeds based on accounts they follow.
Australia's social media changes would also impose obligations on socials to take online action against illegal and harmful content. The proposal will take the same approach as Australia's current minimum-age regulations for users under 16 on social media.
Prime Minister Anthony Albanese said Australia would make policy decisions based on its national interest and his relationship with US president Donald Trump was 'very good'. Anika Wells, communications minister, said that she had not received any communications from US officials regarding the proposed legislation.
The White House has a different stance. The Trump administration had warned trading partners not to impose digital services taxes, fines and other new taxes on U.S. technology firms that "will harm consumers and drive up prices," said spokesperson Kush Desai.
Australia’s Large Social Media Market Adds Weight
The Australia social media reforms will be implemented in a market where digital usage is prevalent. In October 2025, 21 million Social Media User Identities were recorded in DataReportal's Digital 2026: Australia report, or 77.7% of the population.
The same report reported 26.2 million internet users, resulting in an internet penetration rate of 97.1% at the end of 2025 in Australia. The identities of social media users are not necessarily unique, cautions DataReportal.
The eSafety Commissioner has also singled out recommender systems as a source of potential harms online, where platforms often use them to order content based on the expectations of users.
Also, the Australia social media reforms follow the government's under 16 social media restrictions. eSafety started its research in February 2026 of over 4,000 children and families for over two years to evaluate the effectiveness of those restrictions.
The government plans to continue with the Australia social media overhaul and the tension with Washington brings an international element to Australia's growing restrictions on digital platforms.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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