Elon Musk’s X has lost its legal battle against Australia’s internet regulator, with a federal court upholding a AU650,000 (US464,900) fine on Thursday ending a three-year dispute over the company’s failure to comply with child online safety rules.
Under Australian law, the eSafety Commission can penalise tech firms that do not adequately respond to demands for information on how they protect children from harmful content online.
The regulator first approached Twitter in February 2023, requesting a detailed account of how the platform was combating the spread of child sexual abuse material. When Twitter was folded into Musk’s newly created X Corp the following month, the obligation carried over.
X was eventually fined after repeatedly providing what the commission deemed “incomplete” responses. A federal court confirmed in October 2024 that X was legally bound to comply, and Thursday’s ruling set the final penalty amount.
Federal Justice Michael Wheelahan justified the near-maximum fine by noting that X is a substantial corporation, and that the penalty must function as a genuine deterrent not merely a routine cost of doing business.
eSafety head Julie Inman Grant welcomed the ruling, calling meaningful transparency essential to holding tech companies accountable.
Australia has been among the most aggressive regulators of big tech globally, having introduced world-first laws last year banning children under 16 from social media platforms including Instagram and TikTok. Several countries among them Israel, the UK, Norway, and New Zealand are reportedly exploring similar measures.
