Elon Musk's X Corp Faces Legal Setback in Australia Over Noncompliance Fine

An Australian court upheld a fine for Elon Musk's X Corp, previously Twitter, for failing to cooperate with an internet safety regulator's request to address child-abuse material online. X argued it shouldn't respond due to a corporate restructure, but the court ruled against this, citing potential regulatory evasion.

An Australian court has confirmed a hefty fine of A$610,500 against Elon Musk's company, X Corp, for not complying with requests from the eSafety Commissioner concerning anti-child-abuse measures. The court decision demands accountability, dismissing X Corp's claims of liability avoidance due to corporate restructuring.

In court proceedings, X Corp contended that the company’s transition into a new Musk-controlled entity freed it from obligations to respond. The Federal Court disagreed, pointing to potential dangerous precedents if foreign company mergers enabled regulatory evasion in Australia, according to eSafety Commissioner Julie Inman Grant.

Previously, X and the Australian regulator have clashed over content removal orders. Musk labeled earlier orders as censorship, opposing regulatory influence over internet content. As eSafety initiates civil proceedings, X has remained silent on Friday's ruling.

(With inputs from agencies.)