Australia’s Federal Court fined X Corp AU$650,000 for failing to provide complete information to the eSafety Commission about steps to address child sexual exploitation content in a 2023 transparency notice.

X admitted contravening the Online Safety Act by not fully answering the regulator’s questions and must deliver the required responses by late March 2023, during a period of organizational change under Musk’s takeover.

The penalty ends more than three years of litigation that began when the eSafety commissioner issued the February 2023 notice seeking a compliance report.

Justice Michael Wheelahan emphasized the penalty should deter misconduct and not be treated as a routine cost for a major tech platform.

The ruling contributes to rising global regulatory pressure on platforms for content moderation, user safety, and digital compliance.

X’s lawyers argued the case involved historic timeliness issues amid corporate change, while the regulator stressed that failure to provide information hinders regulatory work.

X did not immediately comment on the ruling.

Background includes X’s restructuring under SpaceX and Musk’s broader regulatory scrutiny, including related AI litigation in the United States.

The judge noted X’s size warranted a meaningful deterrent, underscoring that substantial fines are necessary to deter contravention as a matter of business practice.

The resolution brings the nearly three-year legal battle to a close, with eSafety’s findings upheld and a final administrative disposition in place.

The decision was upheld by the full federal court in mid-2025 after an appeal, and X Corp acknowledged the contraventions on the day the ruling was issued.

India has not yet imposed a similar penalty on X but has raised concerns about harmful content, including a MEITY notice demanding audits and action reports on Grok AI-generated material.