Elon Musk's social media network X has been fined A$650,000 (US$463,063) after admitting it failed to provide information about how it was tackling online child abuse material. The federal court penalty, handed down on Thursday, brings to an end a legal battle that lasted more than three years, after the eSafety commissioner first issued the notice to the US-based company in 2023.
Background of the Case
The February 2023 notice asked the company – then known as Twitter – to prepare a report on its compliance with basic online safety expectations around child sexual exploitation and abuse material. Twitter merged into X Corp on 15 March, and the company then provided its report to the commissioner on 29 March. However, the commissioner identified unanswered questions in the report and wrote back to X Corp on 6 April to seek further information, which was ultimately provided on 5 May.
Legal Proceedings
The commissioner took X Corp to the federal court, arguing it had contravened the Online Safety Act between 29 March and 5 May by not properly responding to the safety notice. The company initially challenged the accusations in court, claiming it did not have to comply with the notice because Twitter stopped being a company after the merger. However, Justice Michael Wheelahan rejected that claim and found in the commissioner's favour in October 2024, ordering X Corp to comply with the notice. The decision was upheld by the full federal court in July 2025 after X Corp tried to appeal against the ruling.
Penalty and Response
The US-based company on Thursday admitted the contraventions but noted they had happened at a time when there were significant corporate changes due to the merger. The parties agreed to a A$650,000 penalty, which Justice Wheelahan imposed. The judge found it was appropriate to impose a penalty close to the maximum available fine of A$687,500. “A penalty near the maximum is appropriate in the case of the respondent, which is a substantial corporation so that it operates as a real deterrent and is not simply a cost of doing business,” he said in his written reasons. X Corp has also agreed to pay A$100,000 to the commissioner for its legal fees.
The commissioner welcomed Thursday's ruling, saying it was important international companies complied with Australian regulations. “Meaningful transparency is critical to holding technology companies to account,” eSafety commissioner Julie Inman Grant said in a statement. X Corp will have 45 days to pay the penalties.
