Australia's Under-16 Social Media Ban Leads to 4.7 Million Account Removals

Australia's eSafety Commissioner has reported that social media platforms removed access to approximately 4.7 million accounts under the nation's ban on users under 16 years of age. The law, which took effect in December 2025, prohibits minors from holding accounts on social media platforms and requires companies to enforce the restriction. This landmark regulatory move is being closely watched by governments worldwide as they consider similar protections for young users.

The 4.7 million account removals represent a significant portion of Australia's youth population. With an estimated 5.2 million residents under 16 (20% of the total population of 26 million), the removals suggest near-total compliance by platforms. The eSafety Commissioner's report did not break down the removals by platform, but major services like Meta's Facebook and Instagram, TikTok, and X are known to be subject to the law.

From a business perspective, the removals translate to a direct reduction in active users and, consequently, advertising revenue. While exact revenue per user varies by platform, industry analysts estimate that social media companies generate between $20 to $50 annually per active user in developed markets. Using a conservative estimate of $30 per user, the removal of 4.7 million accounts could result in an annual revenue loss of $141 million for the industry in Australia alone. This figure does not account for the upfront and ongoing costs of compliance, including investments in age verification systems.

Globally, the Australian ban sets a precedent. Governments in the United Kingdom, European Union, and United States are actively debating age restrictions for social media. If similar regulations were adopted in these markets, the impact would be substantial. For instance, the US has approximately 73 million minors under 18. Removing under-16s (about 50 million) from social media platforms could eliminate billions in annual advertising revenue.

Social media platforms face strategic challenges. They must balance compliance with user growth and engagement. Many are investing in advanced age verification technologies, such as AI-driven document checks and biometric analysis. Others are developing youth-focused products that comply with regulations, such as TikTok's recently announced educational hubs with enhanced parental controls. However, these initiatives require significant capital expenditure and may not fully offset revenue losses.

The Australian experiment also highlights regulatory risks. Social media companies may face legal challenges over the effectiveness of their age verification methods or the potential for over-blocking. Additionally, platforms could see increased lobbying costs as they engage with policymakers globally to shape emerging legislation.

In summary, Australia's under-16 social media ban has immediate financial implications for platforms and sets a template for global regulation. The removal of 4.7 million accounts demonstrates the law's tangible impact, and the industry must now navigate a new landscape of compliance-driven user management. As governments worldwide observe these developments, social media companies should prepare for similar restrictions that could reshape their business models and revenue streams.