Australia’s Communications Minister Anika Wells has urged senators to set aside partisan differences and grant the country’s eSafety Commissioner enhanced regulatory authority following Meta’s recent settlement over social media’s impact on children. The move comes after Meta, the parent company of Facebook and Instagram, agreed to pay a US$18 billion (A$25 billion) settlement amid legal actions by attorneys-general from 48 U.S. states and territories.
The settlement, announced on Thursday Australian time, resolves a lengthy potential trial concerning claims that Meta’s platforms contributed to harm among young users. As part of the agreement, Meta committed to implementing significant changes, including a default two-hour daily screen time limit for users under 18 on Facebook and Instagram.
Minister Wells criticized Meta and other major social media firms for having the technological means to reduce addictive behaviours yet failing to do so voluntarily. She noted that this lack of action was a key reason Australia introduced its landmark ban on social media use for children under 16 years old and is seeking stronger enforcement tools for the eSafety Commissioner, Julie Inman Grant.
A Senate inquiry into online safety has recommended increased fines for social media companies and granted additional powers to the eSafety Commissioner to oversee compliance with Australia’s age restriction measures. However, the committee acknowledged divergent opinions on the social media ban’s effectiveness in protecting children. The report emphasized that the proposed reforms constitute only one component of broader efforts to improve online safety, alongside the anticipated Digital Duty of Care framework. The committee also highlighted the need for ongoing monitoring of potential unintended consequences as the regulatory framework evolves, including an independent review mandated under the Online Safety Act 2021.
Wells called for bipartisan support to expedite the legislation, stressing that social media companies should be compelled to address harmful features proactively. She described the Digital Duty of Care as a mechanism to require platforms to identify and mitigate risks such as addiction, poor self-image, and exposure to harmful content before such harms occur. She cited problematic features including algorithmic recommender systems, persistent notifications, and the effects of toxic popularity metrics.
The settlement follows revelations from whistleblower and former Facebook global policy director Sarah Wynn-Williams, who testified before a U.S. Senate inquiry that Meta’s algorithms could detect when young users felt vulnerable and used this data to target advertising. Wynn-Williams stated that advertisers exploit moments of low self-esteem to market products effectively.
The multi-state settlement will allocate funds across the 48 participating states, the District of Columbia, Puerto Rico, American Samoa, and the Northern Mariana Islands in annual payments over the next decade, with distribution based on population size. Florida and New Mexico opted out; New Mexico recently won a separate legal case against Meta.
Meta’s Chief Legal Officer CJ Mahoney welcomed the settlement, describing it as a milestone in achieving consensus between a major social media company and regulators nationwide on addressing youth-related harms associated with online platforms.