Big tech faces stiff penalties for kids' social media access

Australia is cracking down on social media giants, accusing Facebook, Instagram, Snapchat, TikTok, and YouTube of failing to adequately protect minors. The unprecedented global measure is facing its first formal evaluation, and the initial findings are deeply concerning for the tech companies.

Regulatory body flags significant compliance shortcomings

eSafety, Australia’s online safety regulator, released a sharply worded compliance report on Tuesday, highlighting what it calls “significant deficiencies” in the platforms’ age verification measures. The new law, which took effect on December 10, 2025, mandates stricter controls to prevent individuals under 16 from accessing these services. The report details how platforms are struggling to prevent underage users from creating new accounts and, worryingly, allowing repeated attempts at verification until successful.

But the issue runs deeper than mere account creation. What’s particularly troubling is the apparent ease with which children are circumventing these controls. eSafety’s investigation suggests that teens are finding ways to game the system, and the tech companies are showing little urgency in addressing these loopholes. The potential penalties are steep: fines totaling up to AU$49.5 million (US$34 million), and eSafety is already gathering evidence for potential legal action. The situation is reminiscent of the tobacco industry's battles with regulators – a potential watershed moment where tech companies’ legal protections against liability for user activity face a serious challenge.

Recent verdict adds pressure on social media giants

This regulatory pressure arrives on the heels of a landmark legal case in the United States, where Meta and Google were deemed responsible for the mental health issues of a 20-year-old woman, who attributed her struggles to social media addiction. The verdict, ordering the companies to pay significant damages, underscores the growing legal risks and reputational damage facing social media platforms.

Julie Inman Grant, eSafety’s commissioner, issued a strong statement: “These platforms have the capacity to comply with the regulations today, and we expect companies operating in Australia to adhere to our safety laws. They can choose to do so or face escalating consequences, including a significant erosion of their reputation with governments and consumers worldwide.”

Meta, in a prepared statement, pledged its commitment to complying with the ban and collaborating with eSafety and the government. However, they also pointed out the “challenge of accurately determining age online” – a familiar refrain from the industry. The regulator reported that, in some instances, underage users are even being pressured to falsely confirm their age, even after initially indicating they are below 16.

While the number of users under 16 has decreased in the last four months, eSafety’s data reveal that a substantial number of children are still utilizing these platforms. The difficulty in enforcing the law hinges on proving that platforms haven't taken reasonable steps to prevent underage access. The regulator is slated to finalize investigations and consider enforcement actions by mid-year, focusing specifically on Facebook and Instagram (both Meta-owned), Snapchat, TikTok, and YouTube (owned by Google).

The real question now isn't whether these platforms can comply, but whether they will.