Bluesky’s Chief Operating Officer Rose Wang cautioned that bans and strict regulations on social media platforms could create a tougher competitive environment for smaller players. Wang expressed support for protecting young users but emphasized that this should not come at the cost of the industry becoming even more dominated by large platforms.
Speaking at the SXSW event in London, Wang shared her concern that the social media market might consolidate around three to five major platforms in the future. According to her, compliance teams at these platforms could become much larger than the entire staff of smaller companies, potentially blocking new entrants.
Increasingly Difficult Competition for Smaller Platforms
Wang stated that they are not completely against regulation but stressed the need to protect small and medium-sized companies. She warned that heavy regulatory pressure in social media could discourage entrepreneurs aiming to build healthier and alternative spaces.
It was noted that Bluesky was launched within X in 2019 and became an independent entity in 2021. The platform has emerged as an alternative to X, owned by Elon Musk, reaching 43 million users as of March. In comparison, X’s estimated user base is around 450 million.
The company has struggled to maintain its popularity, with reports indicating a 40% decline in daily mobile active users over the past 12 months as of late October last year. Wang also revealed that about 40 people work at Bluesky.
Growing Debate on Protecting Young Users
Wang acknowledged that platforms operate under profit pressures, making it understandable why governments want to intervene with regulations. However, she argued that the issue is not just about imposing bans; regulation must go hand in hand with innovation.
Technology companies argue that such measures will not completely shield young people from harmful content but could isolate them from friends and online communities. The debate centers on balancing youth protection with digital access.
Australia’s Move Sets a Precedent
Australia became the first country to implement a comprehensive social media ban for users under 16 in December. Major platforms including Meta’s Instagram, ByteDance’s TikTok, Alphabet’s YouTube, Elon Musk’s X, and Reddit were required to implement age verification methods.
These methods included facial recognition via selfies, uploading identity documents, and matching bank information. Companies failing to comply faced fines up to 49.5 million Australian dollars.
According to Australia’s eSafety Commissioner, Bluesky also introduced age verification to restrict access for users under 16. This step has accelerated discussions about similar regulations in various countries worldwide.
While similar bills are being considered in the UK, Spain, France, and Austria, in the US, state-level regulations are seen as more likely than a nationwide law. Wang emphasized that without balancing regulation and innovation, smaller players will face even greater challenges in the market.