$79M Fines Threaten Big Tech Under Australia's New Feed Choice Rules
Social media platforms operating in Australia will soon be forced to let users turn off algorithmic recommendations and switch back to chronological feeds.
Under draft legislation proposed by Prime Minister Anthony Albanese’s Labour government, digital platforms must explicitly notify users and give them direct control over their default feed settings. Users will have the option to opt into personalized content recommended by algorithms or opt out entirely, restricting their feeds to posts from friends and creators they specifically choose to follow.
The initiative, named “My Feed, My Way,” places heavy compliance burdens on digital networks, including Meta Platforms (parent of Facebook, Instagram, and WhatsApp) and Alphabet’s Google. Beyond offering feed preferences, companies must formally document the compliance measures they take to address user harm and prove those controls remain effective over time.
For compliance departments and C-suite executives managing global tech operations, the financial risks of ignoring the proposal are substantial. Australia’s internet regulator, eSafety, will oversee compliance and enforcement. The agency will also gain powers to issue binding enforcement notices requiring tech firms to swiftly take down harmful, illegal, or nudity-related content.
Failure to follow the feed transparency and safety mandate carries statutory corporate penalties:
| Violation Type | Maximum Corporate Penalty |
|---|---|
| Failure to comply with user choice rules and documented risk mitigation mandates | A$109.2 million ($79 million) |
Australia’s push mirrors the European Union’s Digital Services Act, which has mandated user profiling opt-outs across EU member states since 2024. However, European regulators experienced a rocky rollout, reporting that several major tech companies failed to make the opt-out mechanism simple enough for everyday users to find.
“This is sensible, pragmatic, practical reform,” Prime Minister Anthony Albanese said, addressing criticism that government intervention could curb online speech. “It gives users choice, and it will hold the big tech companies responsible for inaction if they don’t follow our laws.”
The Australian government is seeking feedback from digital platforms, industry representatives, civil society groups, and privacy advocates before introducing the final bill to Parliament later this year.
