Elon Musk’s X Loses Australia Child Protection Lawsuit After Online Safety Breach

Elon Musk’s X Loses Australia Child Protection Lawsuit After Online Safety Breach

Shivangi
May 21, 2026 12:20 PM IST
Category National

Synopsis

Elon Musk’s X Corp lost a major legal battle in Australia after admitting it breached the country’s Online Safety Act by failing to properly provide information about child protection measures. Australia’s Federal Court upheld the regulator’s penalty and increased the fine to A$650,000 while also ordering the company to pay A$100,000 in legal costs. The dispute began in 2023 when the eSafety Commissioner accused X of giving inadequate responses to questions about anti-child exploitation systems. The case marks another regulatory challenge for Musk’s social media company as it remains under growing global scrutiny around online safety enforcement.

X Corp recently lost a legal battle after it admitted failing to sufficiently answer questions about child protection. The court has confirmed penalties and made the company pay higher fines and litigation costs.

01
Chapter one

Key Highlights

  • X is guilty of breaking Australia’s Online Safety Act
  • The court raised the penalty to A$650,000
  • Company ordered to pay A$100,000 in legal costs
  • Dispute escalated after regulator raised questions in 2023
02
Chapter two

Australian Court Upholds Fine Against Elon Musk’s X

X Corp has been fined by an Australian Federal Court after the company provided false details on its online child protection strategy in breach of Australia’s Online Safety Act. It all started in October 2023 when Australia’s eSafety regulator hit the platform, then branded as Twitter, with an A$610,500 ($384,000) penalty for poor responses to questions regarding the services they used to combat child exploitation. The legal battle went on for almost three years before the company officially admitted its fault in a court hearing on Thursday.

03
Chapter three

X Failed to Answer Child Safety Questions 

It was based on a routine request sent from Australia’s eSafety Commissioner requiring the company to respond to 25 questions about the way in which it dealt with child exploitation and online safety.

At the Federal Court hearing, lawyer Christopher Tran for the regulator said X admitted it breached the law and continued to be uncooperative. In its appeal, X had initially sought to overturn the fine on the grounds that the company's tone and name changed after Elon Musk purchased Twitter for a US$44 billion deal in 2022.

04
Chapter four

Court Raises Fine As Regulator Defends Online Safety Enforcement

Federal Court Judge Michael Wheelahan subsequently raised the total to A$650,000 and ordered X to pay an additional A$100,000 towards the regulator’s legal costs. An eSafety regulator said the delay in some information was not directly detrimental, while non-cooperation with regulators hindered the enforcement of online child safety measures.

05
Chapter five

FAQs

  1. Why did X lose the case in Australia?

The company did not effectively respond to requests for information on child safety.

  1. What law did X breach?

X breached Australia’s Online Safety Act.

  1. What was the regulator investigating?

The regulator sought information on how X prevents child exploitation and maintains safety on its platform.

4. When did the dispute with X begin? 

It started on October 23 when the regulator imposed a fine on X after starting an investigation. 


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Written by Shivangi

At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.