Global Business Today
Australian Court Upholds Fine Against X Over Child Safety Compliance Failures
An Australian federal court has upheld a AU$650,000 ($465,000) penalty against social media platform X, formerly known as Twitter, over its failure to meet child online safety reporting requirements.
The ruling concludes a prolonged legal battle between Australian authorities and the company owned by Elon Musk.
Australia’s online safety regulations empower the country’s watchdog, eSafety Commissioner, to sanction digital platforms that fail to provide detailed information on efforts to shield children from harmful online content.
In February 2023, the regulator requested that Twitter explain the steps it was taking to combat the circulation of child sexual abuse material on the platform. Shortly afterward, the company was restructured into X Corp under Musk’s ownership.
Authorities later argued that the responses submitted by X were inadequate and incomplete, leading to enforcement action and the eventual fine.
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A federal court had previously ruled in October 2024 that the company was legally bound to comply with the regulator’s notice. Delivering judgment on Thursday, Justice Michael Wheelahan stated that a substantial penalty was necessary to ensure the sanction served as an effective deterrent for a corporation of X’s size.
According to the judge, the punishment needed to go beyond being treated as a routine business expense.
Australia has positioned itself at the forefront of global efforts to tighten regulation of major technology companies and strengthen protections for children online. Last year, the country introduced groundbreaking laws preventing children under 16 from accessing platforms including Instagram and TikTok.
The move has reportedly attracted international interest, with countries such as Israel, United Kingdom, Norway, and New Zealand considering similar restrictions.
Responding to the ruling, eSafety Commissioner Julie Inman Grant said transparency remains essential in ensuring technology companies are held accountable for the content shared on their platforms.
She noted that public access to information on how companies tackle harmful online material is critical to strengthening digital safety and public trust.She noted that public access to information on how companies tackle harmful online material is critical to strengthening digital safety and public trust.
