CANBERRA – Australia's Federal Court has ordered Elon Musk's X Corp to pay 750,000 Australian dollars ($534,600) after it admitted to failing to fully comply with a regulatory notice on child sexual exploitation and abuse material.

Thursday's penalty hearing concludes a three-year legal dispute between the social media company and Australia's online safety watchdog. The order includes a civil penalty of 650,000 dollars and legal costs of 100,000 dollars within 45 days.

"A penalty near the maximum is appropriate in the case of the respondent, which is a substantial corporation so that it operates as a real deterrent and is not simply a cost of doing business," said Justice Michael Wheelahan on his decision.

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The case stems from a February 2023 transparency notice issued by Australia's eSafety Commissioner to then-Twitter, requiring information on measures to combat child sexual exploitation and abuse materials on the platform. Twitter merged into X Corp the following month.

X Corp initially argued it was not bound by the notice after the corporate restructure, but the Federal Court rejected that position in 2024, a ruling upheld on appeal in 2025. The company later admitted it contravened the law by failing to respond fully for 38 days, the Australian Broadcasting Corporation reported.

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"Meaningful transparency is critical to holding technology companies to account," eSafety Commissioner Julie Inman Grant said in a statement.

It provides the Australian public with important information about how these companies are "tackling the worst-of-the-worst content on their platforms," she said.