Australia targets social media algorithms in its crackdown on Big Tech

Regulators are increasingly targeting what they perceive as the addictive design of the platforms. Last month, Meta agreed to pay up to $18 billion to resolve social media claims from US states

Australia proposed new legislation that would allow social media users to opt out of platforms' algorithms, a potentially far-reaching step that deepens regulatory efforts worldwide to rein in Big Tech and limit online harm. 

Under the Labor government's draft Digital Duty of Care bill released Tuesday, social media users in Australia would be able to block content suggested by algorithms, and instead choose the material they want in their feeds. 

Australia's proposal opens up a new domestic battleground with Instagram and Facebook-owner Meta Platforms Inc., TikTok and other platform operators. The country's world-first social media ban for under-16s - which went into effect late last year - was quickly followed by governments across the planet adopting similar restrictions. 

 

Meta declined to comment on Australia's proposal, while representatives for TikTok and Snap Inc. didn't immediately reply to emails. 

Regulators are increasingly targeting what they perceive as the addictive design of the platforms. Last month, Meta agreed to pay up to $18 billion in landmark settlements to resolve social media claims from US states. 

Key parts of that deal require the company to put new guardrails on its platforms, including restricting how much time youths can scroll and preventing them from switching off certain safety settings without parental consent. 

"There's been some seismic cases in the past few weeks," Australian Communications Minister Anika Wells said at a press conference Tuesday. "This is our contribution." 

The duty-of-care approach aims to force technology companies to make their products safe by design, imposing fresh burdens on the operating models of major platforms. Breaches of Australia's proposed law could attract penalties of as much as A$109.2 million ($79 million), the government said. 

The European Union has been investigating claims that Meta's products are addictive to children, as the bloc increases regulatory pressure on the US social media company.  

While details on implementation are still unclear and will be critical in assessing the potential impact, Australia's move appears to be "a continuation of a trend rather than a completely novel innovation," said Ewan Lusty, a Singapore-based partner at political and regulatory consultancy Flint Global. 

"There is a global shift toward governments seeking to empower users and provide them with more control over how they interact with digital services, including the option to restrict personalization elements," he said. "Digital services are also taking important steps and providing users with more granular controls over their experience." 

Australia's draft legislation requires platform owners to send a notification to new and existing users offering them a choice over their default feed.