Australian court upholds fine against X for noncompliance with child protection laws

An Australian court upheld an order on Friday requiring Elon Musk’s X to pay a fine of A$610,500 ($418,000) for not cooperating with a regulator’s request regarding anti-child-abuse practices. X had contested the fine, but the Federal Court of Australia determined that the company was obligated to respond to a notice from the eSafety Commissioner, which sought information about measures to combat child sexual exploitation material on the platform.

Musk’s company claimed it was not obligated to respond to the notice due to its integration into a new corporate entity under his control, which it argued eliminated its liability. However, eSafety Commissioner Julie Inman Grant cautioned that accepting this argument could set a troubling precedent, enabling foreign companies to evade regulatory responsibilities in Australia through corporate restructuring. Alongside the fine, eSafety has also launched civil proceedings against X for noncompliance.

This is not the first confrontation between Musk and Australia’s internet safety regulator. Earlier this year, the eSafety Commissioner ordered X to take down posts showing a bishop being stabbed during a sermon. X contested the order in court, claiming that a regulator in one country should not control global content visibility. Ultimately, X retained the posts after the Australian regulator withdrew its case. Musk labelled the order as censorship and claimed it was part of a larger agenda by the World Economic Forum to impose global eSafety regulations.