In a recent court ruling in Australia, Elon Musk’s X has been ordered to pay a fine of 610,500 Australian dollars ($418,000) for failing to cooperate with a regulator’s request regarding anti-child-abuse measures. Despite X’s challenge, the Federal Court of Australia upheld the fine, emphasizing the company’s obligation to respond to the eSafety Commissioner’s inquiry about addressing child sexual exploitation material online.
Musk, who took X private in 2022, argued that the company was not liable to comply with the notice as it had merged into a new Musk-controlled entity. However, the ruling signifies the importance of maintaining regulatory obligations even after corporate restructuring.
The eSafety Commissioner, Julie Inman Grant, expressed concern over setting a precedent that foreign companies could evade Australian regulations through mergers. As a result of X’s noncompliance, civil proceedings have been initiated against the company.
This is not the first clash between Musk and the Australian authority, as X previously contested an order to remove controversial content online. Musk condemned the order as censorship and accused it of being a global plot orchestrated by the World Economic Forum.
Despite the ongoing legal battles, X has not yet responded to the recent ruling. The case highlights the complex interplay between technology giants and regulatory bodies striving to maintain online safety standards.