Rose Wang, chief operating officer of Bluesky, warned at SXSW in London on Wednesday that government action to ban social media platforms for teens risks strengthening Big Tech's grip on the industry by creating compliance barriers that limit access for smaller players. Wang told CNBC the smaller open-source platform supports youth protection but fears extreme heavy regulation will create a world where compliance teams at major platforms are 10 times the size of Bluesky's entire team, making it almost impossible for smaller entrants to build healthier spaces. The statement comes as multiple countries including Australia, the UK, Spain, France, and Austria move toward implementing age restrictions on social media access.
Bluesky COO Warns Compliance Costs Favor Established Platforms
Wang stated at SXSW in London on Wednesday that while Bluesky supports the protection and safety of youth, the question is at what cost. "I'm scared of is in the long term, we're headed to a world where there's about three to five platforms, and extreme heavy regulation of those platforms, and basically the whole compliance teams of these platforms are 10 times the size of our entire team," Wang said. She added that this creates a world where it's almost impossible for smaller entrants to come in and build healthier spaces. Wang said Bluesky has around 40 employees.
Bluesky Reports 43 Million Users and Recent Activity Decline
The open-source platform was created within X, formerly known as Twitter, in 2019 and endorsed by Twitter co-founder Jack Dorsey. Bluesky spun off in 2021 and has grown to 43 million users as of March, which is around 10% of X's estimated 450 million users. By the end of October last year, Bluesky had reportedly seen a 40% drop in daily mobile active users over the past 12 months.
Australia Enforced Under-16 Social Media Ban in December
Australia enforced a blanket social media ban for teens under the age of 16 in December. Major social media platforms including Meta's Instagram, ByteDance's TikTok, Alphabet's YouTube, Elon Musk's X, and Reddit are forced to implement age verification methods such as facial estimation through selfies, uploaded ID documents, or linked bank details. Fines for not complying can reach up to 49.5 million Australian dollars ($35 million) if platforms fail to take reasonable steps to comply. Bluesky introduced age assurance checks to keep under-16s off its platform, according to Australia's eSafety Commissioner. Several countries worldwide are looking to propose similar legislation, including the UK, Spain, France, and Austria. In the U.S., state-level legislation is looking more likely than a national ban.
Wang Calls for Regulatory Balance Between Innovation and Oversight
Wang stated that regulation is not bad but needs to work together with innovation. "I think that there needs to be basically more channels between the smaller, medium-sized players and small businesses with regulators, because they need to be protected, while also then the very Big tech players who we know are circumventing regulation need to be regulated, and so I think that nuance can be struck," Wang said. She explained that these platforms have led to a place where the bottom line is the thing that drives what they do, which is why she understands why governments have to step in and regulate.
FAQ
What did Rose Wang warn about teen social media bans?
Rose Wang, Bluesky's chief operating officer, warned at SXSW in London on Wednesday that government action to ban social media platforms for teens risks strengthening Big Tech's grip by creating compliance barriers. She stated that extreme heavy regulation could lead to a world where compliance teams at major platforms are 10 times the size of Bluesky's entire team, making it almost impossible for smaller entrants to build healthier spaces.
What are the penalties under Australia's under-16 social media ban?
Australia enforced a blanket social media ban for teens under 16 in December. Fines for not complying can reach up to 49.5 million Australian dollars ($35 million) if platforms fail to take reasonable steps to comply. Major platforms are forced to implement age verification methods such as facial estimation through selfies, uploaded ID documents, or linked bank details.
How many users does Bluesky have compared to X?
Bluesky has grown to 43 million users as of March, which is around 10% of X's estimated 450 million users. The platform was created within X in 2019 and spun off in 2021. By the end of October last year, Bluesky had reportedly seen a 40% drop in daily mobile active users over the past 12 months.
