Australian Regulator Fines Elon Musk’s Social Media Platform X for Non-Cooperation in Child Abuse Probe

Highlights

• Australian regulator fines Elon Musk’s X platform $610,500
• Non-cooperation in child abuse probe cited as reason
• Advertisers concerned over content moderation policies
• X closed Australian office after Musk’s acquisition
• Regulator may pursue legal action if fine is not paid.

In a significant blow to Elon Musk’s social media venture, X, an Australian watchdog has dished out a hefty fine of A$610,500 ($386,000) for dodging a probe into their efforts against child abuse. The fine, though a fraction of the staggering $44 billion Musk forked out for the platform last year, marks a dent in the company’s reputation, already struggling with a revenue slump and advertiser discontent over lax content policing.

The e-Safety Commission, the regulatory body, cited X, formerly known as Twitter, for failing to provide satisfactory responses to queries regarding their handling of reports concerning child abuse material on the platform. They sought to know response times and the methods employed for detection.

Though the fine might appear relatively modest in comparison to the colossal acquisition cost, it carries a weighty reputational punch. X has been grappling with a continuous dip in revenue, with advertisers increasingly wary of the platform’s relaxed stance on content moderation and the reinstatement of previously banned accounts. The European Union is also investigating X for potential breaches of its new tech rules, particularly with regard to the handling of disinformation in the context of Hamas’s attack on Israel.

Commissioner Julie Inman Grant voiced her apprehensions, stressing the need for openness and proactive measures in tackling illicit content on digital platforms. She pointed out that a failure to address such critical queries could only signify a dearth of concrete solutions.

After Musk’s acquisition, X shuttered its Australian office, leaving no local representative available for comment. A request for a response sent to the company’s media email address in San Francisco went unanswered.

As per Australian laws enacted in 2021, the regulator wields the authority to compel internet companies to disclose information about their online safety practices, or face penalties. If X chooses not to pay the fine, legal action may be pursued.

Musk had earlier emphasized that combatting child exploitation was a top priority after taking the company private. However, the Australian regulator noted that when asked about efforts to prevent child grooming, X asserted that it was not a platform widely used by young individuals. Additionally, X indicated that existing anti-grooming technology did not meet the required standards for deployment on the platform.

In a parallel development, the e-Safety Commission issued a warning to Google for its non-compliance with requests for information regarding the handling of child abuse content. Google responded, expressing disappointment with the warning and reaffirming its commitment to cooperating with the regulator.

The regulator underscored the seriousness of X’s non-compliance, particularly its failure to address key questions about response times to child abuse reports, strategies for detecting abuse in livestreams, and the size of its content moderation and safety teams. X confirmed to the regulator that it had reduced its global workforce by 80% and no longer maintains a public policy team in Australia, down from two before Musk’s acquisition.

Furthermore, X informed the regulator that its proactive detection of child abuse material in public posts had declined since going private under Musk’s ownership. The company stated that it did not currently employ tools to detect such material in private messages due to ongoing technology development.

($1 = 1.5833 Australian dollars)