Australia to Let Users Switch Off Social Media Algorithms

Australia is moving to give social media users the option to turn off algorithm-driven feeds, adding another layer of Big Tech regulation on top of its under-16 ban. The government says it is proposing the initiative as the latest move by governments and regulators to rein in Big Tech this year.

What the proposal does

Prime Minister Anthony Albanese's government said the “My Feed, My Way” initiative would force social media platforms to allow users over the age of 16 to either opt into an algorithmic feed or opt out and only see content from friends and creators they choose to follow.

The legislation, being drafted and released for targeted consultation, would require platforms to send notifications to new and existing users so they can choose their default feed.

The penalties have teeth

Social media companies that fail to comply could face penalties of up to 109.2 million Australian dollars, or roughly $79 million.

The fines fall under the proposed Digital Duty of Care legislation. For platforms that lean heavily on recommendation engines to drive engagement, an opt-out toggle is a direct hit to time-on-app metrics.

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Context: Australia has been aggressive on Big Tech

This builds on Australia's under-16 social media ban, but the early results have been mixed. Studies from the country's eSafety Commissioner showed that three months after the ban, over 81% of Australian children were still using at least one age-restricted platform, hardly down from the 86% before the ban.

Social media companies have come under scrutiny this year, with Meta settling for $18 billion in a landmark trial in August brought by a coalition of U.S. states led by California, which alleged the company misled users about the harms its platforms posed to younger users.

Why traders should care

Recommendation algorithms are the core product for most social platforms. If Australia forces a chronological or follow-only feed option, expect scrutiny to spread to the EU and UK, where regulators have been watching closely.

Ad pricing, engagement metrics, and content moderation costs are all on the table. Watch for guidance commentary from platforms on international regulatory exposure in the next earnings cycle. You can track more in other news.

Options market and stocks to watch

Watch for reactions in the names most exposed to algorithmic feed regulation:

META — Instagram and Facebook are directly in scope, and Meta is already digesting a large U.S. settlement.

GOOGL — YouTube's recommendation engine is a core driver of watch time and ad revenue.

SNAP — Discover and Spotlight feeds rely on algorithmic surfacing.

PINS — Pinterest's entire pin-recommendation model would be affected by opt-out mechanics.

RDDT — Reddit's home feed and recommended communities could face similar toggles if the framework spreads.

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