Key facts
- Australia's government announced draft legislation allowing social media users to opt out of algorithms.
Australia stated on Wednesday that its proposed social media reforms, which would allow users to opt out of algorithms, pose no risk to its relationship with the United States, despite reported criticism from the Trump administration.
The situation highlights ongoing tensions between the U.S. and Australia over digital regulation, with Australia asserting its national interest while the U.S. administration expresses concerns about measures impacting its leading technology sector.
Australia stated on Wednesday that its proposed social media reforms, which would allow users to opt out of algorithms and give them more control over their feeds, pose no risk to its relationship with the United States. The center-left Labor government announced draft legislation that could result in fines of up to A$109.2 million ($79 million) for non-compliance.
Reports cited White House spokesperson Kush Desai stating that President Donald Trump had warned trading partners against imposing digital services taxes and fines on American technology companies. Desai added that the administration remains committed to raising these issues with partners.
Australia's Communications Minister, Anika Wells, told News24 that U.S. officials had not contacted her office regarding the proposed law and rejected the characterization of the reforms as extortion. Prime Minister Anthony Albanese emphasized that his government makes policies based on Australia's national interest and described his relationship with President Trump as "very good," with a planned meeting in New York.
Australia's efforts to regulate U.S.-based tech firms have become a point of contention. A U.S. congressional committee has requested Australia's internet regulator testify about alleged censorship of American free speech, citing attempts to have Elon Musk's X platform remove certain posts. Trump also opposes digital services taxes on U.S. tech giants and has threatened tariffs.