An Australian federal court has upheld a financial penalty against social media platform X, owned by billionaire entrepreneur Elon Musk, after the company failed to fully comply with child online safety regulations, bringing an end to a legal battle that lasted nearly three years.
The case stems from efforts by Australia’s online safety regulator, eSafety, which in February 2023 requested detailed information from Twitter — before its rebranding to X — on measures being implemented to combat the spread of child sexual abuse material on the platform.
Under Australian law, internet companies are required to provide regulators with requested information regarding how they protect children online. Failure to cooperate or provide complete responses can attract financial penalties.
In March 2023, following Elon Musk’s acquisition and restructuring of the company, Twitter was merged into X Corp. Authorities later accused the company of providing incomplete responses to repeated requests from the eSafety Commission.
A federal court had earlier ruled in October 2024 that X was legally obligated to comply with the regulator’s notice. In its latest decision delivered on Thursday, the court ordered X to pay a fine of AU$650,000, equivalent to approximately US$464,900.
Federal Justice Michael Wheelahan stated that imposing a substantial penalty was necessary to ensure accountability and discourage corporations from treating regulatory sanctions as routine operational expenses.
According to the judge, penalties close to the legal maximum serve as a meaningful deterrent for large corporations and reinforce the seriousness of compliance obligations.
Australia has positioned itself among the leading countries pushing for stricter oversight of technology companies and social media platforms. Last year, the country introduced landmark legislation banning children under the age of 16 from accessing social media platforms, including apps such as Instagram and TikTok.
Reports indicate that several countries are now considering similar measures. Nations including Israel, United Kingdom, Norway, and New Zealand have reportedly engaged Australian officials to explore aspects of the policy.
Responding to the court ruling, eSafety Commissioner Julie Inman Grant stressed the importance of transparency in regulating digital platforms. She noted that holding technology companies accountable remains critical in addressing harmful content online and ensuring the public understands how platforms are responding to some of the most serious safety concerns on the internet.
Australian Court Upholds Fine Against X Over Child Online Safety Compliance Failures
