X loses Oz case due to failure to report child safety efforts. • The Register

The Australian Federal Court has rejected Elon Musk’s claim that X/Twitter does not have to comply with local requirements to provide information on how it detects, removes and prevents child sexual abuse material.

The case focused on Australia’s ‘Basic Online Safety Expectations’ – a set of rules requiring online platform operators to take reasonable steps to ensure the safety of users. The expectations are overseen by a regulator called the eSafety Commissioner, who can require platforms to report on how they meet the expectations.

In early 2023, the commissioner sent reporting notices to Discord, Google, TikTok, Twitch and Twitter – before Elon Musk took over – requesting an explanation of the measures they are taking to detect and tackle online child sexual exploitation and abuse. In October of the same year, the commissioner found that Google and X – as Twitter had then become – had not responded adequately.

In December 2023, the Commissioner took the matter to court, seeking a civil penalty for non-compliance with X.

“eSafety alleges that

Judge within X Corp v eSafety Commissioner was pronounced on Friday and it is a loss for X.

The Musk-owned social network argued that X was not obliged to comply because the commissioner’s notice had been sent to Twitter. The judge wanted nothing to do with this and concluded that American law means that obligations are transferred from an acquired or merged company to the new owner. It didn’t help that a letter from X’s lawyers to the commissioner stated: “X Corp. is the successor to Twitter, Inc.” and “All assets, liabilities, rights, etc. of Twitter, Inc. were transferred by operation of law to X Corp. on March 15, 2023.”

X also argued that the Commissioner’s Notice was issued in the wrong place because after Twitter moved to Nevada the failure to file the response in Australia did not happen. Again the judge disagreed. Musk’s folly also tried to claim that it had been granted a reprieve. The judge disagreed.

The decision means that X must pay a fine of AUD$615,000 ($420,000).

eSafety Commissioner Julie Inman Gran welcomed the decision.

“Had X Corp’s argument been accepted by the Court, it could have set the precedent that the merger of one foreign company with another foreign company could allow it to avoid legal obligations in Australia,” she explained in a statement.

At the time of writing, X and Elon Musk appear to have made no comments on the matter. ®