Australia Downplays US Friction Over Social Media Algorithm Bill
Australia rejects US 'extortion' charge over its social media algorithm bill, insisting ties remain strong ahead of a planned Albanese-Trump meeting.
The Australian government has dismissed concerns that its proposed social media regulations could damage relations with the United States, following reports that the White House criticized the plan as a form of economic coercion.
Under draft legislation unveiled on Tuesday, social media users in Australia would be allowed to opt out of algorithmic content curation, giving them control over their own feeds. Platforms that fail to comply would face fines of up to A$109.2 million (roughly $79 million).
A report on Wednesday quoted a White House spokesperson as saying President Donald Trump had warned trading partners against imposing digital services taxes, fines, or other measures that could be seen as extorting American technology companies. The administration said it would continue to raise these concerns with its partners.
Communications Minister Anika Wells said on Wednesday that US officials had not contacted her office about the proposed law, and she rejected the suggestion that the reforms amount to extortion.
Prime Minister Anthony Albanese defended the policy, stating that decisions are made in Australia's national interest. He described his relationship with President Trump as "very good" and noted that the two leaders are scheduled to meet in New York later this month on the sidelines of the UN General Assembly.
The regulatory push has become a point of tension with Washington. A US congressional committee has asked Australia's internet regulator to testify about what it calls censorship of American free speech, citing previous requests for Elon Musk's X platform to remove certain posts. The regulator has not yet indicated whether she will comply.
The dispute also extends to taxation. Washington opposes digital services taxes on US tech giants and has threatened tariffs on countries that implement them. Australia already has a law requiring large tech companies to pay local media outlets for news content, with a 2.25% tax on local revenue applying to those that do not reach deals.