SYDNEY (Reuters) - Australia's internet watchdog on Friday said it would include Amazon.com-owned live streaming service Twitch in its upcoming teen social media ban, but will not add image-sharing platform Pinterest to the list.

From December 10, Australia will become the world's first country to bar people aged 16 years and under from using social media, with penalties up to A$49.5 million ($32 million) for companies that fail to take "reasonable steps" to comply.

* The eSafety Commissioner said Twitch qualifies as a social media service because it is primarily used for livestreaming and posting interactive content that allows users - including children - to communicate with others. * Twitch plans to deactivate all user accounts for people aged 16 and under from January 9, and will bar new underage users from creating accounts once the ban comes into force next month. * Pinterest, however, will not be added to the list. The Safety Commissioner said that while it allows some online social interaction, that is not its main purpose, noting that it is used for collecting images and curating ideas. * Earlier this month, the commissioner expanded the ban to add Reddit and the video live streaming platform Kick. Major firms already covered include Meta Platforms' Facebook and Instagram, Snapchat, Threads, TikTok, X, and Alphabet-owned YouTube. * No further assessments will be conducted before the rule takes effect on December 10, the commissioner said.

($1 = 1.5494 Australian dollars)

(Reporting by Renju Jose in Sydney; Editing by Thomas Derpinghaus)