Australia Defends Social Media Algorithm Law Amid US Concerns

Australia said Wednesday that its relationship with the United States remains strong despite reports that the Trump administration has raised concerns over Canberra’s proposed social media algorithm regulations.

Australia’s centre-left Labor government unveiled draft legislation on Tuesday that would allow social media users to opt out of algorithm-driven feeds. The measure is designed to give Australians greater control over the content they see by allowing them to curate their feeds instead of relying on platform recommendations.

Social media companies that fail to comply could face fines of up to A$109.2 million ($79 million).

The Australian Financial Review reported that White House spokesperson Kush Desai criticised measures targeting American technology companies, citing President Donald Trump’s opposition to digital services taxes, fines and other restrictions affecting the U.S. technology sector.

Desai said the Trump administration would continue raising such concerns with its trading partners.

Australian Communications Minister Anika Wells told News24 Australia that U.S. officials had not contacted her office regarding the proposed social media law. She also rejected suggestions that Australia’s technology regulations amounted to extortion.

Prime Minister Anthony Albanese said his government would continue making policy decisions based on Australia’s national interest. He described his relationship with Trump as “very good” and said the two leaders are expected to meet in New York later this month during the United Nations General Assembly.

Technology regulation has become an increasingly sensitive issue between Australia and the United States, particularly as Canberra tightens oversight of major U.S.-based social media and technology companies.

A U.S. congressional committee has also asked Australia’s internet regulator to testify about what it claims are efforts to restrict American free speech, including previous attempts to pressure Elon Musk’s X to remove certain posts. The regulator has not indicated whether she will appear.

Trump has separately threatened tariffs against countries imposing digital services taxes on American technology companies.

Under Australian legislation passed this year, major technology firms can face a 2.25% tax on local annual revenue if they fail to negotiate agreements compensating Australian media companies for news content distributed through their platforms.