Elon Musk’s social media company X Corp has been slapped with a six-figure fine after admitting the platform failed to respond to questions by Australia’s online safety watchdog.
Twitter was handed a transparency notice in early 2023 from eSafety Commissioner Julie Inman Grant alongside other major online platforms seeking information about the measures they were taking to address child sexual exploitation material online.
The company, which subsequently merged with X Corp after Elon Musk acquired the platform for $44 billion weeks later, failed to adequately respond by a deadline of March 29, 2023.
X Corp subsequently responded on May 5 addressing deficiencies raised by eSafety in their first reply.
The eSafety Commissioner brought legal action over the breach, which X Corp fought by arguing, in part, that the notice was sent to Twitter, which no longer existed, and the company was therefore not obliged to respond.
In 2024, Justice Michael Wheelahan rejected the challenge in a decision that was affirmed by the full bench of the Federal Court last July.
On Thursday, X Corp returned before the Federal Court where Justice Wheelahan imposed a $650,000 penalty and also ordered the company to pay $100,000 of eSafety’s legal costs.
Handing down his judgment, Justice Wheelahan said the Online Safety Act, used by eSafety to issue the notice, aimed to improve and promote the safety of Australians online.
“The reporting requirements under the Act are an essential aspect of enforcing those expectations,” he said.
“Accordingly, 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.”
In a statement, Ms Inman Grant said the penalty had reinforced that online companies offering services to Australians are obliged to comply with Australian regulations.
“Meaningful transparency is critical to holding technology companies to account,” she said.
“This is not only a key part of our work as Australia’s online safety regulator, it also provides the Australian public with important information about how these companies are tackling the worst-of-the-worst content on their platforms.”
News Corp Australia’s Let Them Be Kids campaign exposed the psychological, physical, social and emotional harm social media was inflicting on Australia’s children and called on the federal government to raise the age of access to social media to 16.
After 18 months of reporting – including sharing the stories of families who lost their children to suicide, Australia became the first country in the world to pass such legislation, that came into effect in December 2025 – with 52 other countries are now considering similar laws.
