Government Official Refuses to Prohibit Social Media Platforms

Treasury Assistant Secretary Tony McDonald has dismissed the notion of Australia outright banning social media platforms that don’t comply with Australian regulations.

Mr. Miller also recommended bringing other popular social media platforms like YouTube and TikTok under the Code due to their significant growth and impact as news sources.

During a parliamentary hearing on June 25, Mr. McDonald was asked about the Treasury’s position on the matter and potential actions to ensure social media platforms comply with Australian laws.

In response, the assistant secretary stated that banning digital platforms wouldn’t effectively enforce regulations.

“The platforms are a necessary trading partner, so shutting them off wouldn’t be ideal,” he mentioned.

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Mr. McDonald highlighted the importance of balancing the needs of small publishers relying on digital platforms with those of major traditional media organizations advocating for stricter regulations on social media firms.

“Considering the impact of decisions on all stakeholders, not just the media, is a pertinent aspect,” he expressed.

“Government tasks us with finding ways to address the needs of as many stakeholders as possible.”

Mr. McDonald also raised concerns that regulations like the Code, from a competition perspective, could inadvertently reduce competition, as larger companies find it easier to comply compared to smaller entities.

Challenges in Enforcing Regulations on Social Media Platforms

At the same time, Mr. McDonald discussed the challenges of enforcing regulations on global social media corporations with the committee.

While acknowledging that the Australian parliament has the authority to establish laws for regulating digital platforms, he pointed out a challenge in effectively enforcing these rules since many social media companies operate outside Australia’s legal jurisdiction.

“Determining the actual operational base of these social media organizations is one of the challenges in the digital space,” he noted.

“Although we engage with them, legally it’s not clear whether they operate within our jurisdiction or not.”

Mr. McDonald’s concerns were exemplified in the stand-off between the eSafety Commission, Australia’s online content regulator, and social media behemoth X, previously known as Twitter.

In September 2023, eSafety issued X an infringement notice for failing to meet the government’s obligations to combat child sexual abuse materials and imposed a $610,000 (US$407,000) fine. However, X has not paid the fine despite the expiration of the deadline.