X Corp. Fined A$650,000 by Australian Court for Failing to Comply with Child Safety Information Request
SYDNEY — May 22, 2026 — The Federal Court of Australia has ordered Elon Musk’s social media platform X Corp. to pay US$ 465,000 in penalties after the company admitted to failing to adequately respond to a regulatory request for information about its measures to combat online child sexual exploitation. The ruling ends a three-year legal battle that began in February 2023, when Australia’s eSafety Commissioner issued a transparency notice to the platform — then still known as Twitter — requiring detailed information about how the company was tackling child sexual abuse material on its platform .
Company Admits 38-Day Compliance Failure
The court found that X Corp. contravened Australia’s Online Safety Act by failing to provide a complete response to the regulator’s questions between March 29 and May 5, 2023 — a period of 38 days . The company’s lawyer, Perry Herzfeld, acknowledged the violation but noted it occurred during a “period of change and transition for the company” following Elon Musk’s $44 billion acquisition and the merger of Twitter into X Corp. .
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X Corp. had initially argued that it was not bound by the notice because Twitter Inc. had ceased to exist as a separate entity following the corporate restructuring . However, the Federal Court rejected this argument in October 2024, a ruling that was upheld on appeal in July 2025 .
Judge: Penalty Near Maximum for ‘Real Deterrent’
Justice Michael Wheelahan, who presided over the case, imposed a penalty close to the maximum available fine of A$687,500, stating that a significant financial penalty was necessary to serve as a genuine deterrent for a major corporation .
“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,” Justice Wheelahan said in his written reasons .
The court also ordered X Corp. to pay A$100,000 toward the eSafety Commissioner’s legal costs. The company has 45 days to pay the total amount .
eSafety Commissioner Welcomes Ruling
Julie Inman Grant, Australia’s eSafety Commissioner, welcomed the Federal Court’s decision, emphasizing that “meaningful transparency is critical to holding technology companies to account” .
The commissioner noted that the original request for information was part of a broader effort to understand how major tech platforms were complying with basic online safety expectations regarding child sexual exploitation and abuse material .
“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,” Inman Grant said in a statement .
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Part of Broader Regulatory Crackdown
The case represents the latest in a series of clashes between X Corp. and Australian regulators. The company has previously clashed with the eSafety Commissioner over its refusal to remove videos of a stabbing at a Sydney church and over Australia’s world-leading ban on social media for children under 16 .
The resolution comes as X Corp. prepares for a planned IPO, with the company recently being folded into Musk’s broader SpaceX conglomerate . The company did not immediately respond to a request for comment following the ruling .
SOURCES / INPUTS
- South Carolina Lawyers Weekly: Elon Musk’s X loses Australia child protection compliance lawsuit
- NHK World-Japan: X fined for violating Australia’s child protection laws
- The Canberra Times: X Corp fined $650k over child abuse notice failure
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