Australian court upholds $418,000 fine on Elon Musk's X over child abuse inquiry

An Australian court upheld an order on Friday for Elon Musk's X to pay a fine of A$610,500 ($418,000) for failing to cooperate with a regulator's request for information about anti-child-abuse practices.

X had challenged the fine but the Federal Court of Australia ruled it was obliged to respond to a notice from the eSafety Commissioner, an internet safety regulator, seeking information about steps to address child sexual exploitation material on the platform.

Musk took X, then called Twitter, private in 2022.

But the company had argued it was not bound to respond to the notice in early 2023 because it was folded into a new Musk-controlled corporate entity, removing liability.

"Had X Corp's argument been accepted by the Court it could have set the concerning precedent that a foreign company's merger with another foreign company might enable it to avoid regulatory obligations in Australia," eSafety Commissioner Julie Inman Grant said in a statement following the verdict.

Safety has also started civil proceedings against X because of its noncompliance. X did not immediately respond to a request for comment on Friday.

This is not the first conflict between Musk and the Australian internet safety regulator.

The eSafety Commissioner earlier this year ordered X to remove posts showing a bishop in Australia being stabbed during a sermon.

X challenged the order in court on the grounds that a regulator in one country should not decide what internet users viewed around the world, and ultimately kept the posts up after the Australian regulator withdrew its case.

Musk said at the time the order was censorship and shared posts describing the order, which would have applied globally, as a plot by the World Economic Forum to impose eSafety rules on the world.

Musk Criticises Australian Government's Misinformation Law

Earlier this month, Elon Musk sharply criticised Australia's centre-left government, labelling them as "fascists" in response to their proposed misinformation legislation.

The new law, introduced by the Australian government, would impose hefty fines on social media platforms that fail to curb the spread of online falsehoods.

Musk’s comment came after a user on his platform, X, shared a Reuters article about the legislation.

Musk has consistently positioned himself as a strong advocate for free speech, and this recent law only deepened his conflict with the Australian authorities.

The proposed legislation could see platforms like X and others fined up to 5% of their global revenue if they do not implement and enforce codes of conduct aimed at stopping the spread of misinformation.

If tech platforms fail to establish appropriate measures, a government regulator would impose its own standards and fine non-compliant companies.

The government has been adamant about protecting public health, election integrity, and national security from the dangers of misinformation.

Australian officials quickly responded to Musk’s "fascists" remark.

Assistant Treasurer Stephen Jones dismissed Musk's comment as "crackpot stuff," asserting that the government has the right to pass laws ensuring the safety and well-being of Australians.

Jones added that tech platforms should not hide behind free speech to allow harmful content such as scams, deepfakes, or violent live streams to flourish unchecked.

Australian Government Targets Social Media with New Misinformation Law

The Australian government introduced legislation in Parliament that could lead to social media platforms facing fines of up to 5% of their global revenue if they fail to prevent the spread of misinformation.

The law is part of a global trend aimed at regulating tech giants and ensuring that false and harmful content is adequately controlled.

This legislation would require platforms to set up codes of conduct approved by a regulator, with non-compliance leading to significant penalties.

The proposed law focuses on combating misinformation that threatens election integrity, public health, or critical infrastructure.

Communications Minister Michelle Rowland stressed the importance of addressing the issue, stating that misinformation and disinformation pose a serious threat to Australia’s democracy, society, and economy.

The government remains committed to ensuring that tech platforms do not allow dangerous falsehoods to proliferate unchecked.

In response to earlier criticisms, the new version of the bill clarified that the Australian Communications and Media Authority would not have the power to force the removal of individual posts or user accounts.

The bill also protects professional news, artistic, and religious content.

Despite these changes, tech companies like Meta have raised concerns, with some questioning how the new regime will impact their operations in Australia.