Australia’s internet regulator announced that its teen‑social‑media ban will now cover Reddit and the live‑streaming platform Kick, extending the restriction to users under 16. The ban takes effect on December 10, 2025, and platforms that fail to take reasonable steps to exclude children under 16 could face fines of up to AU$49.5 million (about US$32 million).
Reddit’s Australian user base is largely adult, with over 90 % of users aged 18 or older. The under‑16 segment is therefore a small fraction of the platform’s traffic in the country, but the regulatory precedent could influence other jurisdictions. Compliance will require Reddit to implement age‑verification measures or block access for under‑16 users, adding operational costs and potentially reducing engagement from a niche demographic that contributes modestly to advertising revenue.
Kick, which has a younger user profile—about 65 % of its global users are aged 16‑34—will face a more pronounced impact on its Australian audience. The ban will restrict access for the platform’s under‑16 users, potentially curbing growth in a segment that drives a significant portion of its live‑streaming traffic and advertising spend.
Reddit’s recent financial performance underscores the company’s resilience amid regulatory pressure. In Q3 2025, the platform generated $585 million in revenue, a 68 % year‑over‑year increase, and reported a net income of $163 million. Gross margin expanded to 91 %, driven by high‑margin advertising and subscription revenue, while operating costs were kept in check through disciplined spending. Management guided for Q4 2025 revenue of $655 million to $665 million, reflecting confidence in sustained demand for its advertising and data‑center services. The strong results are largely attributable to robust demand from advertisers seeking high‑quality audiences and to cost controls that preserved margin despite inflationary pressures.
The Australian move is part of a broader global trend of tightening child‑safety regulations on social media. While the ban may limit access for a small segment of users, it signals a shift toward stricter enforcement of age restrictions and could prompt similar actions in other markets. Critics argue that outright bans may hinder digital literacy and social connection for adolescents, suggesting that targeted education and privacy‑preserving age‑verification tools could be more effective alternatives.
Overall, the regulatory change adds a new compliance layer for Reddit and Kick, but the impact on their core adult user base and revenue streams is expected to be limited. The precedent, however, may influence future policy decisions worldwide, compelling platforms to strengthen age‑verification processes and reassess their growth strategies in markets with evolving child‑safety laws.
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