Australia’s internet safety watchdog has imposed a $386,000 fine on Elon Musk’s X for its failure to cooperate with a probe into anti-child abuse practices. This penalty follows Mr. Musk’s statement last November emphasizing the removal of child exploitation as a top priority. The eSafety Commission criticized X’s lack of action on this issue, describing it as “empty talk.” Insiders had previously expressed concerns about their inability to protect users from trolling following significant layoffs at X.
X’s revenue has been on a continuous decline since Mr. Musk’s $44 billion acquisition last year. Under Australian laws that took effect in 2021, regulators have the authority to compel internet companies to provide information about their online safety practices or face financial penalties. Failure to pay these fines can lead to legal action against the company.
Google, an Alphabet subsidiary, also received a warning for noncompliance in providing information about handling child abuse content. However, the eSafety Commission considered X’s lack of cooperation more severe, as the company did not respond to numerous key questions and left several sections of the inquiry entirely blank.
X informed the regulator that it had reduced its global workforce by 80% and no longer has any public policy staff in Australia, compared to two before Mr. Musk’s acquisition. This incident comes on the heels of criticism directed at X for disabling a feature that allowed users to report election-related misinformation. This move raised concerns, particularly ahead of a significant Australian referendum aimed at granting Indigenous people more rights.