Australian Court Fines Elon Musk's X Corp £345,000 for Child Safety Failures

Elon Musk's X Corp has been fined A$650,000 (approximately £345,000) by an Australian court, concluding a three-year legal contest concerning child safety compliance. The company admitted its failure to respond adequately to an information request from Australia's eSafety regulator regarding its strategies to combat the online exploitation of children.

The eSafety Commissioner, Julie Inman Grant, initially issued the fine in 2023. X Corp had contended it was not obliged to comply, citing the company's merger, which saw Twitter transition to X Corp, thus arguing the original entity no longer existed. However, the court ruled on Thursday that the company was indeed required to respond.

Justice Michael Wheelahan increased the original fine of A$610,000 and ordered X Corp to contribute A$100,000 towards the regulator's legal expenses. Wheelahan 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."

The eSafety Commissioner has previously challenged X Corp, notably over its refusal to remove videos of a stabbing incident at a Sydney church. Grant emphasised the importance of transparency, stating, "Meaningful transparency is critical to holding technology companies to account." The penalty must be paid within 45 days.