An Australian court has upheld an order for Elon Musk’s platform, X, to pay a fine of A$610,500 ($418,000) for its failure to cooperate with a regulatory request regarding anti-child-abuse measures.
The Federal Court of Australia ruled that X was obligated to respond to a notice issued by the eSafety Commissioner, which sought information on the platform’s efforts to combat child sexual exploitation material. Despite challenging the fine, X argued that it was not required to respond because it had been incorporated into a new corporate entity under Musk’s control, which, in its view, eliminated its liability.
eSafety Commissioner Julie Inman Grant emphasized the importance of the ruling, stating that accepting X Corp’s argument could have set a dangerous precedent, allowing foreign companies to evade regulatory responsibilities in Australia following mergers.
In addition to the fine, eSafety has initiated civil proceedings against X for non-compliance with its requests.
X has not yet responded to inquiries regarding the court’s decision. This conflict is not the first between Musk and the Australian eSafety regulator. Earlier this year, the eSafety Commissioner directed X to remove posts depicting a bishop being stabbed during a sermon in Australia. X contested the order in court, asserting that a regulator in one country should not dictate what content users worldwide can access. The platform ultimately retained the posts after the Australian regulator withdrew its case. Musk criticized the order as censorship, claiming it was part of a broader agenda by the World Economic Forum to impose global eSafety regulations.
