Australian Federal Court orders X Corp to pay a fine

Canberra — The Australian Federal Court has ordered X Corp, Elon Musk’s company, to pay A$750,000 after admitting it failed to fully comply with a regulatory notice about material involving exploitation and sexual abuse of children. The sanctions hearing on Thursday, 21 May, ended a three-year legal dispute between the social media platform and the online safety watchdog. The judgment includes a civil penalty of A$650,000 and A$100,000 in legal costs, payable within 45 days. ‘The penalty near the maximum was appropriate in the case of the defendant, which is a large company, so it can serve as a real deterrent rather than merely a cost of doing business,’ said Judge Michael Wheelahan. The case originated from a transparency notice issued by the eSafety Commissioner in February 2023 to the platform then known as Twitter, which requested information on steps to combat material involving exploitation and sexual abuse on the platform. Twitter subsequently merged with X Corp the following month. X Corp initially argued that it was not bound by the notice following corporate restructuring, but the Australian Federal Court rejected the argument in 2024, and the decision was upheld on appeal in 2025. The Australian Broadcasting Corporation reported that the company later admitted to breaching the law by failing to respond fully for 38 days. ‘Meaningful transparency is vital to ensure accountability for technology companies,’ said eSafety Commissioner Julie Inman Grant in a statement. ‘The ruling provides important information to the Australian public about how these companies handle the worst content on their platforms,’ she said.