X, formerly Twitter, fails to pay $600k fine: regulators

Operators of X, formerly known as Twitter, are being sued after allegedly failing to answer questions about the handling of child exploitation material.

Embattled billionaire Elon Musk is facing a fresh legal challenge in Australia after X Corp, formerly known as Twitter, allegedly failed to answer questions about its handling of child abuse material.

Online watchdog eSafety announced on Friday it was launching civil proceedings in the Federal Court against X Corp who it alleged had failed to comply with reporting under the Online Safety Act.

The social media giant was issued a transparency notice by regulator eSafety in February, requiring it provide information about how the company was meeting stringent legislative requirements.

In a statement, eSafety said X Corp had allegedly failed to comply with the notice, which related to handling of child abuse and exploitation material on Twitter, which has since been renamed as X.

SpaceX and Tesla chief executive Elon Musk completed his purchase of Twitter late last year. Picture: Leon Neal/Getty Images

“eSafety alleges that X Corp did not prepare a report in the manner and form specified because it failed to respond or failed to respond truthfully and accurately to certain questions in the notice,” it stated.

The regulator further alleges X Corp failed to pay an infringement notice for $610,500 issued by eSafety in September over the social media giant’s alleged failure to comply with the transparency notice.

“X Corp did not pay the infringement notice. It has sought judicial review of eSafety’s reliance on the transparency notice and the giving of the service provider notification and the infringement notice,” eSafety said.

The regulator said it was important that X Corp and other providers “were deterred from noncompliance with statutory notices” and requested the judicial review be heard in tandem with the civil penalty proceedings.

Musk was critical of Twitter Inc’s handling of alleged child abuse material. Picture: David Odisho/Getty Images/AFP

It comes after a tumultuous period for the social media giant following the takeover by Elon Musk. Prior to the purchase, Mr Musk was vocal about alleged failings by Twitter’s then management to stop child abuse material.

According to documents filed by eSafety, X Corp is alleged to have failed to answer – or answer truthfully – four questions about how it was meeting the Basic Online Safety Expectations under Australian law.

The measures, which are contained under the Online Safety Act, focus on the “systems, policies and processes that service providers may employ to prevent harm and respond to harm when it occurs”.