The Federal Court has today ruled X Corp. was obliged to respond to a transparency notice seeking information about measures to address the proliferation of child sexual exploitation material on its platform.
His Honour Justice Michael Wheelahan further ordered that X Corp. pay eSafety’s costs.
eSafety Commissioner Julie Inman Grant welcomed the Court’s rejection of X Corp’s argument it should not have to respond because eSafety’s notice was given to the former entity Twitter Inc. in February 2023.
Twitter Inc. merged into X Corp. in March 2023.
“Early last year, we asked some of the world’s biggest technology companies, including Twitter, to report on steps they were taking to comply with the Australian Government’s Basic Online Safety Expectations in relation to child sexual exploitation and abuse material on their platforms,” Ms Inman Grant said.
“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.”
eSafety has separately commenced civil penalty proceedings against X Corp. in relation to its alleged non-compliance with the transparency notice.
eSafety takes compliance with transparency notices seriously and looks forward to ensuring alleged non-compliance is adequately addressed.
“eSafety remains committed to exercising provisions available under the Online Safety Act to hold all tech companies to account without fear or favour, ensuring they comply with the laws of Australia and prioritise the safety and wellbeing of all Australians,” Ms Inman Grant said.
Background
After Elon Musk acquired Twitter, Inc., incorporated in Delaware, United States, it was merged with X Corp., incorporated in Nevada, United States, in March 2023.
His Honour’s judgment can be found on the Federal Court website (https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2024/2024fca1159).
eSafety’s concise statement for the civil penalty proceedings can be found in our media release, eSafety initiates civil penalty proceedings against X Corp.