An Australian court has ruled that Elon Musk's X platform cannot be subjected to two different sets of online safety regulations concurrently, marking a significant legal victory for the social media company.
The Federal Court determined on Wednesday that the online safety legislation was specifically drafted to prevent a platform from being classified under both a 'social media service' code and a 'relevant electronic service' code at the same time. The eSafety Commissioner, Julie Inman Grant, had argued that X's capacity for users to message and engage in encrypted chats meant it should fall under both regulatory standards, thus facing stricter rules.
However, Justice Elizabeth Raper found that the law does not permit such dual regulation. "The X Platform is a 'social media service' ... The Commissioner's construction would not sit comfortably with the (law's) structure," Justice Raper stated in her judgment. "It would allow the Commissioner, as has happened here, to create a standard and apply it to a provider who is already the subject of another industry sector code."
X's legal team had contended that subjecting the platform to the stricter code due to its messaging capabilities was unreasonable, arguing that it would be "rather perverse for a social media service ... not to enable messaging or chat between end users." Justice Raper concurred, noting that if messaging functionality alone were sufficient to trigger dual regulation, it would lead to "enormous overlap between the two sections of the industry."
X also raised concerns that the Commissioner had not adequately consulted with the company before implementing the proposed regulatory change. The Commissioner's representatives countered that X had been given ample opportunity to voice objections, and that the new standard was scheduled to take effect six months after its public announcement.
A spokesperson for the eSafety Commissioner acknowledged the court's decision but noted that X's challenge to invalidate the entire 'relevant electronic service' standard had been unsuccessful. The spokesperson added that the eSafety Commissioner is "considering the judgment and next steps."
This ruling is the latest development in a series of public disputes between X and the eSafety Commissioner. In a previous instance in 2024, the Commissioner dropped a legal action against X that sought to compel the removal of a graphic video depicting the stabbing of a bishop in a Sydney church. Following that case, Ms. Inman Grant reported receiving death threats, which she attributed in part to public comments made by Mr. Musk, who referred to her as an "unelected bureaucrat" and the "eSafety Commissar."
Despite this recent setback, the eSafety Commissioner secured a win in May when the Federal Court ordered X to pay $750,000 in fines and legal fees for failing to notify the Commissioner's office about its measures to combat child exploitation. The court's decision on Wednesday focused specifically on the interpretation of online safety legislation regarding the dual classification of digital platforms.
