Age Limits and Social Media: A Global Overview of Regulatory Measures

As social media platforms become increasingly integrated into daily life, governments worldwide are grappling with the challenge of protecting children from online harms. Age restrictions have been implemented to varying degrees across different countries, aiming to balance child safety with freedom of expression. This article explores the global landscape of regulatory measures and their economic implications for tech companies and digital economies.

Australia is at the forefront of this debate, with a proposed law to ban children under 16 from accessing social media. This world-first legislation, introduced in November 2024, seeks to protect young teens from harmful content and online safety challenges. The bill, which has wide political support, would impose fines of up to AU$50 million ($33 million) on platforms that fail to prevent underage access. However, child welfare and internet experts have raised concerns about isolation and the potential for children to seek out less regulated platforms, potentially exposing them to even greater risks.

The United States allows children aged 13 and up to use platforms like Facebook, Instagram, and TikTok with parental consent. The European Union's General Data Protection Regulation (GDPR) raised the age limit to 16, but member states can lower it to 15 with parental consent. South Korea requires parental consent for children under 14. Each country's approach reflects a balance between protecting children and ensuring their access to online communication and information.

Economically, these regulations impact social media platforms and their advertisers significantly. A reduction in user bases means reduced ad revenue, as younger users drive engagement and ad impressions. For instance, Facebook's average revenue per user (ARPU) was $50.15 globally in 2020, with younger users contributing disproportionately to this figure. As Australia enforces its ban, we can expect a decline in ARPU, along with decreased stock valuations for these platforms.

Advertisers, too, will face economic implications. With less access to younger audiences, they may struggle to reach their target market effectively, potentially reducing ad spending on these platforms. However, this shift could also prompt platforms to innovate and offer more targeted, age-appropriate advertising solutions.

From a digital literacy and online safety perspective, age restrictions may limit children's exposure to educational resources and opportunities for learning about online safety. Younger users might resort to less regulated platforms, potentially increasing their vulnerability to inappropriate content and online predators. To mitigate these risks, governments and educators must develop robust digital literacy programs that teach online safety skills and responsible social media use to children before they reach the age limit.

In conclusion, the global landscape of age restrictions and regulatory measures on social media platforms is complex and multifaceted. While these regulations aim to protect children from online harms, they also present economic challenges for tech companies and advertisers. As governments continue to grapple with this issue, a balanced approach that combines age restrictions with education and support for young people is crucial for promoting digital literacy and online safety.