Australia’s under-16 social media ban pressures major platforms

Australia has become the first major country to ban social media use for children under 16, raising questions about the future of global platforms like Instagram, TikTok, and X.

The policy, driven by concerns over youth mental health and safety, comes after incidents involving graphic content circulated online.

French President Emmanuel Macron has expressed support for such social media restrictions.

Impact on social media platforms

Platforms like TikTok, Instagram, and X are likely to lose some of their following due to limited younger demographics being restricted.

However, tech giants have resisted such legislation for many years, fearing the loss of their audience and revenue. Observers say some have already changed direction: Lemon8, TikTok’s spin-off, sees downloads rise in markets where restrictions are expected.

The analysts warn that while bans may limit exposure to objectionable content, they may also push young users onto other less moderated platforms, fragmenting audiences and diminishing their control of advertising ecosystems.

The impact of these developments on the growth of these platforms is being closely watched by the investing community.

In the US, there is a long-pending bill, while the threat of a tougher regime in France and Malaysia has brought additional pressure on these companies.

Tech shares, which have a heavy reliance on younger generations, have been exposed to such challenges. Reportedly, SoFi Technologies dropped 12% when it performed well in 2025.

The social media industry may be required to evolve in the form of developing AI-enabled tools, kid-friendly platforms, or a subscription model.

It is noted that how well social media platforms can retain their subscribers while complying with tough regulatory norms would be critical to their success.