Elon Musk's social media platform X has been fined A$650,000 (US$463,063) after admitting it failed to comply with an Australian legal notice regarding its efforts to combat online child sexual exploitation material. The penalty, handed down by the Federal Court on Thursday, concludes a legal dispute that has spanned over three years.
Background of the Case
The eSafety commissioner first issued the notice in February 2023, at a time when the company was still known as Twitter. The notice required the company to prepare a report outlining its compliance with basic online safety expectations concerning child sexual exploitation and abuse material.
Twitter merged into X Corp on 15 March 2023, and the company submitted its report to the commissioner on 29 March. However, the commissioner identified several unanswered questions and requested further information on 6 April, which X Corp ultimately provided on 5 May.
The commissioner subsequently took X Corp to the Federal Court, arguing that the company had contravened the Online Safety Act between 29 March and 5 May by failing to properly respond to the safety notice.
Legal Challenges and Rulings
X Corp initially contested the allegations, claiming it was not obligated to comply with the notice because Twitter had ceased to exist as a legal entity following the merger. However, Justice Michael Wheelahan rejected this argument in October 2024, ruling in favour of the commissioner and ordering X Corp to comply with the notice. The decision was upheld by the Full Federal Court in July 2025 after X Corp's appeal.
On Thursday, the company admitted to the contraventions but noted that they occurred during a period of significant corporate restructuring due to the merger.
Penalty and Deterrence
The parties agreed to a A$650,000 penalty, which Justice Wheelahan imposed. The judge noted that a penalty close to the maximum available fine of A$687,500 was appropriate given that X Corp is a substantial corporation. He stated, "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."
In addition to the fine, X Corp has agreed to pay A$100,000 to the commissioner for legal fees. The company has 45 days to pay the penalties.
Commissioner's Response
The eSafety commissioner, Julie Inman Grant, welcomed the ruling, emphasising the importance of compliance with Australian regulations for international companies. "Meaningful transparency is critical to holding technology companies to account," she said in a statement.
Support Resources
For those affected by child abuse, support is available. In Australia, children, young adults, parents, and teachers can contact Kids Helpline on 1800 55 1800 or Bravehearts on 1800 272 831. Adult survivors can contact Blue Knot Foundation on 1300 657 380. In the UK, the NSPCC offers support for children on 0800 1111 and for adults concerned about a child on 0808 800 5000. The National Association for People Abused in Childhood (Napac) supports adult survivors on 0808 801 0331. In the US, call or text the Childhelp abuse hotline on 800-422-4453. Other resources can be found at Child Helplines International.
