SYDNEY ¨C An Australian court upheld a regulator¡¯s fine against Elon Musk¡¯s social media company X Corp., after it admitted to violating the law by failing to supply information ?about its online child protection measures, ending a nearly three-year dispute.
After ?the ?eSafety regulator, a frequent target of online attacks by ?Musk, fined the company in October 2023 for what it called an inadequate response to a standard request for information about anti-child ?exploitation processes, the company resolved the dispute on Thursday by admitting wrongdoing.
¡°The respondent ?admits that it contravened the act,¡± said Christopher Tran, a lawyer for the eSafety commissioner, referring to Australia¡¯s Online Safety ?Act, in a Federal ?Court hearing. ¡°There was ongoing noncompliance for some 38 days.¡±
The resolution ends a legal battle which began ?when the regulator fined ?the company formerly called Twitter 610,500 Australian dollars ($437,000) over ?its answers to some 25 questions.
X initially sought ?to overturn ?the penalty on grounds that the company had changed its name since being acquired by Musk for $44 billion in 2022. The regulator later took a separate legal action to recover ?the fine.
On Thursday, Judge Michael Wheelahan raised the payout to AU$650,000 and ordered X to pay another AU$100,000 to cover some of the regulator¡¯s legal costs. The resolution ties up a loose end for the company ?which ?earlier this year was folded into Musk¡¯s sprawling technology conglomerate ?SpaceX ahead of a planned trillion-dollar initial public offering within weeks.
?Perry Herzfeld, a lawyer for X,?said the dispute boiled down to ¡°historic issues relating to the timeliness of provision of information.¡±
The contravening conduct took place during a ¡°period of change and transition for the company,¡°?he ?told the court.
Tran, the eSafety lawyer, acknowledged there was no loss resulting from X¡¯s actions but said that ¡°not providing information when requested by a regulator impedes a regulator when doing her work.¡±
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