The e-Safety Commission, responsible for online safety, penalized X, which Musk rebranded from Twitter, for its lack of response to inquiries related to its handling of child abuse material on the platform. The questions included the time taken to respond to reports of such content and the methods employed for its detection.
While the fine, when compared to the $44 billion Musk paid for the platform in October 2022, might seem relatively modest, it represents a reputational blow to a company that has witnessed a continuous decline in revenue. Advertisers have reduced their spending on the platform due to its limited content moderation and reinstatement of numerous banned accounts.
Most recently, the European Union launched an investigation into X for possible violations of its new tech rules, alleging that the platform failed to control disinformation concerning Hamas's actions in relation to Israel.
Commissioner Julie Inman Grant commented on the matter, saying, "If you've got answers to questions if you're actually putting people, processes, and technology in place to tackle illegal content at scale, and globally, and if it's your stated priority, it's pretty easy to say." She added, "The only reason I can see to fail to answer important questions about illegal content and conduct happening on platforms would be if you don't have answers."
X closed its Australian office after Musk's acquisition, which meant there was no local representative to respond to Reuters. A request for comment sent to the San Francisco-based company's media email address remained unanswered.
Under Australian laws that became effective in 2021, the regulator possesses the authority to compel internet companies to furnish information about their online safety practices or face fines. If X refuses to pay the fine, the regulator can take legal action against the company, according to Grant.
Following the company's privatization, Musk stated that "removing child exploitation is priority #1." However, the Australian regulator pointed out that when asked how X prevented child grooming on the platform, the response was that it was "not a service used by large numbers of young people." X also claimed that available anti-grooming technology was not advanced enough to be deployed on the platform.
In addition to the fine on X, the commission issued a warning to Alphabet's Google for not complying with its request for information regarding the handling of child abuse content. Google's responses to some questions were described as "generic" by the regulator, which Google expressed disappointment in. Google emphasized its commitment to collaborating with the e-Safety Commissioner, the government, and the industry to enhance online safety for Australians.
X's noncompliance was regarded as more serious, encompassing its failure to respond to questions about response times to child abuse reports, methods used to detect abuse in live streams, and the number of staff dedicated to content moderation, safety, and public policy. X acknowledged to the regulator that it had reduced its global workforce by 80% and had no public policy staff in Australia, in contrast to the two it had prior to Musk's takeover.
The company informed the regulator that its proactive detection of child abuse material in public posts had decreased following the privatization. Moreover, X stated that it did not employ tools to detect such material in private messages because "the technology is still in development," as outlined by the regulator.
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