Reddit (NASDAQ:RDDT) has filed a lawsuit against Australia’s newly enacted ban on social media for users under 16, claiming that the measure infringes on free political discourse. This legal action, taken on March 15, 2025, marks a significant escalation in the ongoing debate surrounding the regulation of social media platforms.
Legal Challenge Against the SMMA Law
The lawsuit challenges the Social Media Minimum Age (SMMA) law, which came into effect just two days prior, making it the first of its kind globally. While Reddit is complying with the new regulations, it argues that the ban violates Australia’s constitutional right to free political communication. Additionally, the platform asserts that it should be considered exempt from the ban, as it does not fit the traditional definition of social media.
Under the r/RedditSafety thread, the company acknowledges the necessity of protecting minors but contends that the SMMA law leads to intrusive verification processes for both young users and adults. The company argues that this legislation restricts teenagers’ participation in age-appropriate communities, including vital political discussions, while its inconsistent application across different platforms raises further concerns.
Reddit emphasizes that there are more effective and less invasive methods to ensure the safety of young users. The implications of the SMMA law extend beyond minors, as it raises significant privacy and free expression issues for all internet users, according to the platform’s statement.
Political Response and Industry Impact
This legal challenge follows a similar lawsuit initiated by two Australian teenagers associated with a libertarian group, further intensifying the legal battle. A favorable outcome for Reddit could set a precedent, potentially enabling other platforms to contest the ban. In light of these developments, Australia’s Communications Minister, Anika Wells, reiterated that the government would not be influenced or intimidated by major technology companies.
The Australian government has framed the ban as a protective measure, with Prime Minister Anthony Albanese endorsing it as a significant step for families. However, the measure has faced criticism from various quarters, including Reddit’s recent lawsuit. Other major platforms have also responded to the new regulations. Elon Musk’s X platform complied with the law shortly before the deadline, stating it would remove users who do not meet the new age requirements, emphasizing that compliance is legally mandated.
Earlier, Meta Platforms (NASDAQ:META) took proactive measures by deactivating accounts of Australian users under 16 on Instagram, Facebook, and Threads. This move has been interpreted as part of a broader global effort to regulate Big Tech companies and ensure compliance with local laws.
In terms of market performance, Reddit’s stock has seen a year-to-date increase of 40.76%, according to data from Benzinga Pro. However, on the day of the lawsuit announcement, the stock fell by 1.92%, closing at $233.54.
As the legal proceedings unfold, the implications of this case will be closely observed, not only for Reddit but for the future of social media regulation in Australia and beyond.
