X Corp has been fined $650,000 after failing to fully comply with an eSafety transparency notice seeking information about how it was addressing child sexual exploitation and abuse material on its platform.
The Federal Court penalty follows a three-year legal process involving the social media platform, formerly known as Twitter, and Australia’s online safety regulator.
Justice Michael Wheelahan said reporting requirements under Australia’s Online Safety Act were an essential part of enforcement.
“Where the operator of a large social media platform has failed to comply with those reporting requirements, the public has an interest in the commissioner seeking and obtaining a public declaration of contravention, which will contribute to a deterrent effect,” he said.
Justice Wheelahan said a penalty near the maximum was appropriate for X Corp, describing it as a “substantial corporation”.
“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.
eSafety says transparency is critical
The case centred on a transparency notice issued by eSafety in early 2023. The notice sought information about steps the platform was taking to comply with the Australian Basic Online Safety Expectations.
Julie Inman Grant, eSafety Commissioner, said transparency was central to holding technology companies accountable.
“Meaningful transparency is critical to holding technology companies to account,” Inman Grant said.
“In early 2023, we asked some of the world’s biggest technology companies, including Twitter, to report on steps they were taking to comply with the Australian Basic Online Safety Expectations in relation to the proliferation of child sexual exploitation and abuse materials on their platforms.
“This is not only a key part of our work as Australia’s online safety regulator, but it also provides the Australian public with important information about how these companies are tackling the worst-of-the-worst content on their platforms.”
Julie Inman Grant
Legal process followed Twitter’s transition to X
In July last year, the Full Federal Court held that X Corp was required to respond to eSafety’s transparency notice.
That ruling followed X Corp’s earlier appeal of the Federal Court’s October 2024 decision, which found the company was required to comply with the notice issued to Twitter in February 2023.
Twitter merged into X Corp in March 2023, after Elon Musk’s acquisition of the platform.
The penalty reinforces that technology companies offering services in Australia must comply with local online safety regulations.
Main image: Elon Musk