Australia's online safety watchdog has initiated legal action against the messaging app Telegram, alleging a failure to remove extremist content, including material linked to the mass shootings in Buffalo, New York, and Christchurch, New Zealand, as well as Islamic State group beheadings.

The Australian Federal Court could fine the United Arab Emirates-based app up to 54.6 million Australian dollars ($38 million) if it is convicted of an "alleged failure to detect and remove pro-terror material," eSafety Commissioner Julie Inman Grant said.

The civil action, filed on Wednesday, serves as a test of Australia's 2021 law that requires tech platforms to actively work to remove illegal and pro-terrorism material from their networks. The eSafety Commissioner stated that the content remained accessible on the service long after Telegram had been put on notice.

Telegram, which has a reported 1 billion users globally, has denied the claims. "We reject these allegations and will contest them in court," a spokesperson said in a statement.

The watchdog is specifically addressing content shared in Telegram's group chats and channels. "This case concerns content linked to some of the most notorious acts of known extremist violence in recent history, including material associated with the Christchurch and Buffalo terror attacks," Inman Grant said.

In 2022, a white supremacist in Buffalo livestreamed part of a supermarket shooting that killed 10 Black people, citing motivations from an Australian white supremacist who livestreamed a 2019 attack on two Christchurch mosques, murdering 51 Muslim worshippers.

Telegram channels created after these attacks allegedly became populated with users endorsing the killers and sharing violent content. The Australian watchdog's claim argues that the unlimited broadcast size of Telegram channels necessitates the app taking responsibility for moderating harmful material.

Telegram's statement indicated that its "extensive anti-terrorism efforts are well-documented," citing figures of blocked content and channels. According to the app, over 150,000 "terrorist-related communities" have been blocked this year.

Inman Grant noted that eSafety began urging Telegram to comply with its policies in March 2024, but the platform had been unresponsive for months. Compliance reportedly improved after French authorities arrested Telegram's founder and CEO, Pavel Durov, in August 2024 on allegations of illegal activity. Durov was released on bail.

The court case also involves "horrific material used for propaganda and for radicalization," according to Inman Grant, referring to IS beheadings.

"When platforms are alerted to terrorist content, they must act," Inman Grant stated.

On Wednesday, Russia's Federal Security Service accused Durov of aiding terrorist activities and announced plans to add his name to international wanted lists.

Telegram maintains its commitment to user privacy and human rights, including freedom of speech and assembly, and highlights its role in pro-democracy movements globally.