Australia has dismissed concerns that its relationship with the United States could be damaged by new plans to give social media users greater control over algorithm-driven feeds.
The warning came after reports that the Trump administration had criticised Canberra’s proposed digital reforms, which would allow users to choose between an algorithmically curated feed and content from accounts they follow.
Under the draft legislation, platforms that fail to comply could face fines of up to A$109.2 million (£55.9 million).
White House spokesman Kush Desai told the Australian Financial Review that President Donald Trump had “unequivocally warned trading partners against imposing digital services taxes, fines, and other forms of extortion on America’s leading technology sector”.
“The administration remains committed to raising these issues with our trading partners,” Mr Desai added.
Australia’s Communications Minister Anika Wells said no US official had contacted her office directly about the proposed law. She rejected the suggestion that the reforms amounted to extortion.
Prime Minister Anthony Albanese said Australia would continue to set its own policies according to the national interest, while insisting that his relationship with Mr Trump remained “very good”. The two leaders are expected to meet in New York later this month during the United Nations General Assembly.
The proposed changes form part of Australia’s wider Digital Duty of Care legislation, which was released for consultation this week. The package would require online platforms to address harmful material and provide users aged over 16 with a lasting choice over how their feeds are organised.
Mr Albanese said the reforms were designed to give Australians control over what they see online rather than allow the Government to control content. Ms Wells said the legislation would require technology companies to identify risks on their platforms and take steps to reduce them.
The dispute adds to tensions between Canberra and Washington over the regulation of predominantly US-based technology companies. A US congressional committee has also called on Australia’s online safety regulator to give evidence over allegations that efforts to remove posts from Elon Musk’s X platform amount to censorship.
Mr Trump has previously opposed digital services taxes imposed on American technology companies and threatened tariffs against countries pursuing such measures. Under a separate Australian law, major technology firms can face a levy of 2.25 per cent of their local annual revenue if they fail to negotiate agreements to pay news organisations for content shared on their platforms.
