This photo shows a smartphone screen set up to display logos of major social media platforms such as Instagram, Facebook, LinkedIn, Reddit, Telegram, X, Bluesky, Tiktok, and Whatsapp.
Martin Lelièvre | AFP | Getty Images
Government action to ban social media platforms risks further tightening Big Tech’s grip on the industry and limiting access for small businesses, Blue Sky executives have warned.
Rose Wang, Bluesky’s chief operating officer, told CNBC on the sidelines of SXSW in London on Wednesday that small open source platforms are not opposed to regulation, but smaller companies in the industry should be protected.
“I support youth protection and safety. So the question we have is, what is the cost? Because what I’m essentially afraid of is the long-term. We’re heading into a world where there are about three to five platforms and there are very strict regulations on those platforms. Basically, the size of the entire compliance team of these platforms is 10 times the size of our entire team,” Wang said.
“So basically we live in a world where it’s almost impossible for smaller entrants to come in and build healthier spaces,” she added.
This open source platform was created in 2019 within X (previously known as Twitter) and endorsed by Twitter co-founder Jack Dorsey. Bluesky became independent in 2021 and quickly rose to prominence as a rival to the Elon Musk-owned platform. The number of users has since grown to 43 million as of March, which is only about 10% of X’s estimated 450 million users.
Bluesky has struggled to maintain its popularity, reporting a 40% drop in daily mobile active users over the past 12 months by the end of October last year. Wang said the company has about 40 employees.
“These platforms have led to a situation where their profits dictate their actions. I understand why the government has to step in and regulate when the platforms aren’t doing anything right,” Wang explained.
While the government says it aims to protect young people, tech companies have pushed back, arguing that the measures will not necessarily prevent teens from viewing harmful content and will ultimately isolate them from their friends and communities.
Australia first implemented a blanket social media ban for under-16s in December, covering major social media platforms including Meta’s Instagram and ByteDance’s TikTok. of the alphabet YouTube, Elon Musk’s X, and reddit Forced to implement age verification methods such as facial estimation through selfies, uploaded IDs, and linked bank account information.
Failure to take “reasonable steps” to comply could result in fines of up to A$49.5 million ($35 million). According to Australia’s eSafety Commissioner, Bluesky has also introduced age verification checks to prevent anyone under the age of 16 from accessing the platform.
Australia’s ban sets a precedent and several countries around the world, including the UK, Spain, France and Austria, are considering similar proposals. In the US, state-level legislation is seen as more likely than a nationwide ban.
“The last thing I want to say is that I’m not saying that regulation is bad. I’m saying that regulation needs to go hand in hand with innovation,” Wang said.
“Fundamentally, I think there needs to be more channels between small and medium-sized players and regulators, because they need to be protected. On the other hand, the very large tech companies that we know are evading regulation also need to be regulated, so I think you can understand the nuances of that.”
