While in Australia authorities are intensifying checks on platforms like Facebook, Instagram, Snapchat, TikTok, and YouTube – and their respective companies, namely Meta Platforms, TikTok, and Google – for compliance with the ban on under-16s, the same big tech companies are pursuing new strategies to diversify revenue. Investigations and experiments are thus proceeding on parallel tracks, outlining a phase of strong transformation for the sector.
INVESTIGATIONS ON COMPLIANCE WITH THE BAN IN AUSTRALIA
The Australian government has launched investigations into Facebook, Instagram, Snapchat, TikTok, and YouTube for a “potential non-compliance” with the ban that prevents under-16s from using social media, which came into effect in December. Communications Minister Anika Wells stated that companies are not doing enough to enforce the rules, while online safety commissioner Julie Inman Grant announced a move to an enforcement phase: “These platforms can comply today, and we certainly expect companies operating in Australia to respect our safety laws.”
If platforms do not adopt adequate measures, they risk fines of up to 49.5 million Australian dollars. However, authorities clarified that any actions will take time, as it will be necessary to prove that companies have not implemented effective systems to prevent access by minors.
A BAN DIFFICULT TO ENFORCE
Despite the introduction of the regulation, a significant share of users under 16 continues to access social media. This is shown by a survey cited by the Guardian of about 900 parents, which found that 31% of children still have accounts, compared to 49% before the ban.
Among under-16s already on the platforms, about 70% have maintained access on Instagram, Snapchat, and TikTok, while just under half remained active on YouTube. According to the report, “despite an overall reduction in the number of accounts, a significant share of under-16s maintain accounts on platforms subject to age limits.”
Authorities also reported practices deemed inadequate, such as minors being able to attempt age verification multiple times or create new accounts after suspension.
INSUFFICIENT VERIFICATION TECHNOLOGIES
The Australian eSafety commission highlighted limitations in the systems adopted by platforms, including age estimation via facial recognition, considered unreliable especially for users close to the 16-year threshold.
According to the government, some companies have also adopted controls that are too weak, allowing users to easily bypass restrictions. “None of this is impossible. None of this is even difficult for big tech companies, which are billion-dollar innovative enterprises. What emerges from this update is unacceptable,” Wells stated.
META’S RESPONSE
Meta, however, justified itself by highlighting technical difficulties: “We have also made clear that accurately determining age online is a challenge for the entire industry.” It reiterated its commitment to comply with regulations and cooperate with Australian authorities. “The most effective, consistent, and privacy-respecting approach is to require robust age verification and parental approval at the app store and operating system level before a teenager can download an app or create an account,” a spokesperson said.
The company also explained that it will continue to invest in systems to detect and remove under-16 accounts, while TikTok and Google have so far not released comments.
NEW BUSINESS MODELS FOR SOCIAL MEDIA
Meanwhile, to avoid succumbing to regulatory pressures, Meta is testing new revenue sources. The company, as reported by TechCrunch, has launched in some countries a premium subscription on Instagram, called Instagram Plus, which introduces exclusive features for paying users.
Among these, Bloomberg specifies, is the ability to view Stories without being detected, as well as advanced audience management tools and greater control over content visibility. The initiative fits into the strategy of diversifying revenue beyond advertising, the group’s main source of income. “Our goal with these tests,” explained an Instagram spokesperson, “is to understand what people find most useful in a set of premium features.”
According to available information, the service is being tested in countries such as Mexico, Japan, and the Philippines, with prices of a few dollars per month.
The introduction of subscriptions, the financial daily notes, represents a broader trend in the tech sector. Companies like Snap and X are also developing paid offerings to complement advertising revenue and make it more predictable, and Meta has confirmed it is considering similar models for Facebook and WhatsApp, signaling a strategic evolution as the sector simultaneously faces new regulations and changes in user habits.
