White House accuses Australia of 'extortion' over social media curbs
US President Donald Trump has condemned Australia's proposed social media regulations as a form of extortion, warning trading partners against imposing digital services taxes and fines on American tech firms. The White House spokesman said the administration would raise these issues with trading partners. Australia's Prime Minister Anthony Albanese defended the "My Feed, My Way" initiative, which would allow users to opt out of algorithms, as a matter of national sovereignty.
The White House economic spokesman, Kush Desai, issued a direct warning to trading partners, stating that President Trump opposes digital services taxes and fines targeting American technology firms. The administration signaled it will actively pursue these concerns in future trade discussions.
Australia's proposed legislation, announced by Prime Minister Albanese, introduces a "digital duty of care" and would let users bypass algorithmic content selection. Communications Minister Anika Wells framed the measure as expanding citizen choice over their online feeds.
This dispute could reshape the relationship between governments and major tech platforms. Australian users may gain greater autonomy over their content feeds, potentially reducing algorithmic echo chambers. Conversely, American tech firms could face increased operational costs or trade friction, which might influence service pricing or availability. Furthermore, this standoff may encourage other nations to pursue similar digital sovereignty measures, altering the global regulatory landscape.