X Corp loses court challenge over fine over alleged notification of child abuse material on Twitter

A court has ruled that X Corp must comply with an Australian safety notice about child sexual abuse on Twitter.

The US-based social media giant sued Australia's eSafety Commissioner in Federal Court, arguing that it did not have to pay the fine or further penalties for non-compliance.

The commissioner fined Twitter $610,500 in October 2023, alleging the company failed to adequately respond to questions about harmful content on its platform, particularly child sexual abuse material.

The penalty, imposed under Australia's Online Safety Act, could result in a daily fine of $780,000 for each day the company fails to respond.

X argues that the sentence must be restarted

X Corp's lawyer, Bret Walker SC, argued in September that the commissioner's sanctions could not be transferred to another company following a merger.

Twitter, incorporated in the US state of Delaware, ceased to be a corporation when it merged with X Corp in Nevada and any criminal proceedings would have to be refiled, Mr Walker said.

But the commissioner's attorney, Stephen Lloyd, said the company, known as Twitter, was not “dissolved” at the time of the merger in March 2023 and its assets and liabilities should be transferred to X Corp. be transferred.

Judge Michael Wheelahan agreed Friday, dismissing X Corp's case.

In published reasons, Judge Wheelahan said the social media company had failed to demonstrate that it was not required to respond to the reporting notice.

“X Corp’s status changed so that it became the surviving company with which Twitter Inc. merged,” the judge said.

“From the perspective of Nevada law, the new status of

Judge Wheelahan dismissed the case and ordered X Corp to pay the commissioner's legal fees.

AAP