Australia has passed a new law that bans social media for children under age 16, citing harms to young people’s mental health.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The law, which takes effect in November 2025, sets some of the toughest social media controls in the world and will force platforms run by companies such as Meta Platforms (META) and Alphabet (GOOGL) to take steps to verify people’s ages.
Australia’s center-left Prime Minister Anthony Albanese has argued that social media poses risks to the mental health of children and is looking for support from parents in the country of 26 million people. The social media ban won broad support, with members of the opposition Conservative Party also voting in favor of it.
Age-Verification System
Australia’s government now plans to trial an age-verification system that may include biometrics or government identification to enforce the social media ban. Under the new law, social media companies could be fined up to $32 million for any violations.
Social media companies Alphabet and Meta Platforms argued unsuccessfully against the new law and that a ban should be delayed until the age-verification trial is concluded. Elon Musk’s X, formerly known as Twitter, had argued that the Australian law violates children’s human rights.
META stock has gained 61% so far this year.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 44 Wall Street analysts. That rating is based on 40 Buy, three Hold, and one Sell recommendations made in the past three months. The average META price target of $662.62 implies 16.41% upside from current levels.
