Australia says its ties with the United States are not at risk despite White House criticism of Canberra's draft social media algorithm reforms. The bill would let users opt out of recommendation algorithms and could fine non-compliant platforms up to A$109.2 million. Australian officials say they have had no direct contact from U.S. representatives, while Prime Minister Anthony Albanese affirmed that policy is guided by Australia’s national interest and will meet President Trump in New York.
Australia Says U.S. Relationship Intact After White House Critique Of Social Media Algorithm Bill
Novva Tolson,15, poses while holding a mobile phone, in Sydney, Australia July 14, 2026. REUTERS/Jeremy Piper
SYDNEY, Sept 9 (Reuters) - Australia said on Wednesday it did not believe its relationship with the United States was at risk after reports that the Trump administration had criticised Canberra's proposed rules targeting social media algorithms.
The centre-left Labor government on Tuesday unveiled draft legislation that would allow social media users to opt out of recommendation algorithms, effectively letting people customise their own feeds. Under the draft, platforms that fail to comply could face penalties of up to A$109.2 million (about $79 million).
According to a report in the Australian Financial Review, White House spokesperson Kush Desai said the Trump administration had 'unequivocally warned trading partners against imposing digital services taxes, fines, and other forms of extortion on America's leading technology sector' and 'remains committed to raising these issues with our trading partners.'
Communications Minister Anika Wells told News24 Australia the United States had not contacted her office about the proposed law and rejected characterisations that the reforms amounted to extortion. Prime Minister Anthony Albanese said his government sets policy based on Australia’s national interest, described his relationship with President Trump as 'very good,' and noted the two leaders will meet in New York later this month on the sidelines of the UN General Assembly.
Australian and American flags sit on a table during a meeting between U.S. Defense Secretary Pete Hegseth and Australia’s Deputy Prime Minister and Defence Minister Richard Marles at the Pentagon, in Washington, D.C., U.S., September 2, 2026. REUTERS/Kylie Cooper
Australia's push to regulate mostly U.S.-based technology companies has become a source of friction under the current U.S. administration. A U.S. congressional committee has requested testimony from Australia’s internet regulator about what it describes as a regime that censors American free speech, citing attempts to have Elon Musk's X remove certain posts; the regulator has not yet said whether she will comply.
Separately, Australia passed a law earlier this year that could tax major tech companies 2.25% on local annual revenue if they do not reach agreements to pay local media outlets for news shared on their platforms. The developments highlight growing tensions over how democracies regulate algorithms, content moderation and the financial responsibilities of global platforms.
($1 = 1.3848 Australian dollars)
(Reporting by Renju Jose in Sydney; Editing by Clarence Fernandez)
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