An Australian court has upheld a $610,500 fine against X, formerly known as Twitter, for failing to cooperate with an information request related to child safety. 

The Federal Court of Australia has ruled that the company was required to respond to a notice from the eSafety Commissioner. 

The notice sought details on the platform's efforts to tackle child sexual exploitation material.

The fine was initially imposed in October 2023 after X did not adequately respond to the regulator's inquiries. 

X challenged the fine, arguing that the responsibility no longer applied after Twitter merged into X Corp, a new corporate entity under Elon Musk's control. 

However, the court rejected this argument, stating that X Corp inherited Twitter's liabilities, including its regulatory obligations in Australia.

eSafety Commissioner Julie Inman Grant has praised the ruling.

“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,” she said.

X has not commented on the decision, which also requires the company to cover the Commissioner's legal costs.

This legal clash is not the first between X and the Australian internet safety regulator. 

Earlier in 2023, the eSafety Commissioner directed X to remove posts showing an Australian bishop being stabbed during a sermon. 

X contested that order, claiming that no single country’s regulator should dictate global online content. X kept the posts live after the regulator withdrew its case.

The fine marks a significant moment in the regulatory efforts to hold large tech platforms accountable for harmful content. 

In addition to this penalty, the eSafety Commissioner has initiated further civil proceedings against X due to its non-compliance with Australian safety laws.

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