Social giants need more regulation, cannot be trusted to self-regulate, social media probe finds

Social media giants need to be reined in through tighter laws, with big tech unable to be trusted to “self-regulate in the interests of Australian users”, especially children, a landmark parliamentary probe has found.

However, the Coalition has argued the measures don’t go far enough in holding companies to account, and called for a continued probe into social media, as well as dating apps, gaming platforms and live streaming programs.

In the 204-page report released on Monday evening, it said social media platforms posed a threat to “democracy, our social cohesion, and indeed our national security”.

It also said apps were designed to be highly addictive, and centred around business models which served to “amplify these risks and increase the likelihood of harm”.

Among the report’s 11 final recommendations, it called on the government to “consider options for greater enforceability of Australian laws” for companies, in order to bring them under Australia jurisdiction.

The government should also ensure that platforms introduce measures which gives users greater control into what user-generated and paid content they are served, while also giving users the ability to “alter, reset, or turn off their personal algorithms and recommender systems”.

Some recommendations were also already underway, including a “overarching statutory duty of care,” which was announced by Communications Minister Michelle Rowland last week.

The report also said any regulatory changes should be “co-designed” with young people, and said recommended the creation of a Digital Affairs Ministry to boost funding for digital competency education and online safety skills.

Following the tabling of the report, Liberal MP Andrew Wallace said the probe was a “missed opportunity” to enforce further reform, and said there wasn’t enough attention paid to “child safety, foreign interference, and mental health, particularly in relation to eating disorders and addiction”.

Instead he said the Coalition wanted stronger user control features to address design flaws like scrapping infinite scrolling and called for more work to bolster digital and media literacy, and pressure on platforms to report on actual or suspected child sexual abuse and exploitation, regardless of encryption settings.

He also demanded regular reports on how much revenue apps were generating from regulated and restricted industries like alcohol, gambling, and pornography.

“Parliamentary inquiry such as this, one should feel, should freely offer recommendations to government to steer policy and find practical solutions to real world policy problems with far reaching consequences,” he told parliament.

Mr Wallace said that due to the fast-moving nature of social media, a standing committee should be convened to probe social media platforms, as well as dating apps, gaming platforms, live streaming programs, and the Metaverse.

Greens communication spokeswoman Sarah Hanson-Young also said there needed to be more measures to prohibit social media giants from targeting, harvesting and selling data received from children, arguing against the government’s proposal to ban social media for teens under 16.

“For too long social media giants have made their billionaire owners rich, while failing to show any concern for the welfare and safety of the public,” she said.

“The tech giants are making massive profits from the data of everyday Australians.

“We need to get on with an Australian version of a tech tax, or a Digital Services Tax, to ensure these corporations pay their fair share back to the communities they profit off.

“These are already in place in countries like France and Canada and we can do it here.”

However committee chair and Labor MP Sharon Claydon said big tech companies had been “put on notice”.

“Social media has a social responsibility for the safety of their users, and this report maps out ways in which they can be held to account, ensuring social media is a safe place for all Australians to find connection, community, and reliable information,” she told parliament.