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Australia Wants to Let People Switch Off the Algorithm. What It Means for Business

·By Ven Agency
Australia Wants to Let People Switch Off the Algorithm. What It Means for Business

If you use Instagram, Facebook or TikTok to reach customers, a proposal from the federal government is worth knowing about. Draft laws released in September would make platforms ask Australians over 16 how they want their feed to work: picked by an algorithm, or made up only of accounts they follow.

Nothing changes yet, and the proposal faces real opposition. But it goes to the heart of how businesses get seen on social media, so here's a plain-English look at where it stands.

What's being proposed

On 8 September, Prime Minister Anthony Albanese and Communications Minister Anika Wells released draft legislation for a digital duty of care. It's a broad package aimed at making online services safer, covering social media, online games, apps and AI chatbots.

One part, which the government calls My Feed, My Way, deals with feeds. Platforms would have to tell users over 16 that they have a choice, and let them pick between:

  • an algorithmic feed with personalised recommendations, which is how most feeds work today, or
  • a chronological feed showing only posts from accounts they follow.

The package also includes protections for under-18s, and penalties of up to $109.2 million for platforms that don't comply, enforced by the eSafety Commissioner. The government expects to introduce the legislation to Parliament this year. Consultation on the draft closed on 22 September.

What Instagram says

Adam Mosseri, who runs Instagram, weighed in during a visit to Australia. His argument was that chronological feeds tend to get flooded by the accounts that post the most, which are often companies, brands and publishers, so posts from friends and smaller creators get drowned out. He said engagement drops, by as much as half, and that people end up less satisfied with their feeds. He also estimated that only a low single-digit percentage of Australians use Instagram's existing Following feed, and suggested it could be made easier to find.

Where it stands now

The proposal has run into opposition from two directions. On 16 September, the Coalition said it had rejected the draft and wouldn't negotiate on it, which leaves the government needing the Greens and crossbench to pass it. And on 22 September, the United States government made a public submission objecting to the plan. It described the plan as censorship reaching beyond Australia's borders, and asked that US platforms be left out of the feed-choice rules.

Business groups are watching too. When the draft was released, the Australian Chamber of Commerce and Industry pointed out that small businesses rely on social platforms to find customers, and asked that the reforms avoid collateral damage to business.

What it could mean for businesses

It's too early to know, and a lot depends on how many people actually change their feed. Mosseri's own estimate suggests few people use a following-only feed today, so the effect may be smaller than the headlines suggest. For people who do switch, a few things would matter more:

  • Your followers. In a following-only feed, you only reach people who already follow you. A genuine following becomes more valuable than chasing viral reach.
  • How often you post. By Mosseri's own argument, chronological feeds reward accounts that post often. That could favour businesses with a steady posting rhythm, though it's also what he says makes feeds worse for users.
  • Channels you own. Your website, your email list and your Google Business Profile don't depend on any platform's feed settings.

What to do now

Nothing urgent. The bill isn't before Parliament yet, and its final shape could change. The sensible moves are the same ones that protect you from any platform change: build a following of people who genuinely want to hear from you, keep your email list and website in good shape, and avoid relying on a single platform for enquiries.

We'll keep watching and share an update if the bill reaches Parliament.

From Ven

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Related reading: social media marketing for SMEs and email marketing: a winning strategy.

Also this week: two WordPress security fixes in a week and Search Console's new AI report.

Sources

Ven Agency

The Ven Agency team specialises in web design, SEO, and digital marketing for Australian businesses.

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