Elon Musk's X fined over $400,000 for failing to address child abuse content on the platform

An Australian court has fined X (formerly Twitter) A$610,500 (around $418,000) for failing to comply with regulatory inquiries regarding child safety measures on the platform. The Federal Court of Australia ruled that the platform was fined for not adequately responding to a request from the eSafety Commissioner, which is the country's internet safety authority.

The conflict began when the eSafety Commissioner inquired about X's strategies to combat child sexual exploitation material on this platform. When Elon Musk privatized Twitter and restructured it into a new corporate entity, X argued that it was no longer liable to respond to such inquiries. X claimed that this corporate restructuring exempted it from regulatory obligations in Australia.

However, the court rejected this argument. Julie Inman Grant, who is the eSafety Commissioner, said that X's defense could set a dangerous precedent for other foreign companies to evade regulatory responsibilities by simply merging with another entity.

Governments all over the world are demanding greater accountability from social media companies. The Australian government has been pretty proactive in enforcing regulations aimed at ensuring online safety, especially concerning children. In addition to the fine against X, the eSafety Commissioner has initiated civil proceedings against the platform for its non-compliance.

This isn't the first time Musk's X has clashed with the Australian authorities. Earlier this year, the eSafety Commissioner had ordered X to take down content depicting a stabbing incident. X contested this in court, saying that a regulator in one country shouldn't dictate global content accessibility. The authority later withdrew its case, but Musk still labeled the order as censorship and framed it as part of a larger conspiracy involving international organizations.

In addition to the fine, the Australian authority has ordered X to bear all legal costs associated with the proceedings. Australia is also working on stricter legislation on social media usage among children and teenagers and curbing digital misinformation. Under these proposed regulations, tech companies could face fines of up to 5% of their annual revenue if they fail to manage misinformation effectively.

Via Bloomberg (paywall)