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Elon Musk's X Fined for Not Complying with Australia's Child Protection Laws
The court also ordered X to pay AU$100,000 in costs after finding it failed to fully answer questions about child sexual exploitation content.
On Thursday, Federal Court Justice Michael Wheelahan fined X Corp. $650,000 for failing to provide information to Australia's online safety watchdog in 2023 regarding how the platform tackled child sexual exploitation content.
A transparency notice issued on Feb. 22, 2023, sparked the three-year legal battle after X argued it was not obliged to answer eSafety's questions regarding child exploitation materials on its platform.
Lawyer Christopher Tran told the court the platform admitted "ongoing noncompliance for some 38 days," while Federal Court Justice Michael Wheelahan also ordered X to pay $100,000 in legal costs to eSafety Commissioner Julie Inman Grant within 45 days.
X's lawyer Perry Herzfeld characterized the case as concerning "historic issues relating to the timeliness of provision of information" during a "period of change and transition for the company," according to Reuters.
Legal troubles for Elon Musk continue to mount, including lawsuits regarding his AI company's Grok "spicy mode" facilitating non-consensual deepfakes, as he prepares to take his company public on the Nasdaq where Musk controls 85 per cent of voting power.