X misplaced a authorized battle in Australia during which the corporate tried to keep away from a $400,000 fantastic by claiming Twitter ceased to exist. Inventive Authorized Arguments, First artwork know-howwhich occurred throughout a dispute with the Australian Digital Security Fee that lasted for greater than a yr.
Final February, the committee requested the corporate, then often known as Twitter, to supply particulars concerning the platform’s dealing with of kid sexual exploitation. In its response, X didn’t reply some questions and “sure sections had been fully clean,” the fee stated in an announcement. In consequence, the Digital Security Fee fined the corporate greater than $415,000 for the violations.
Exactly to battle the fantastic, X claimed that he shouldn’t be held accountable as a result of Twitter “now not exists.” From courtroom paperwork:
X Corp stated that as of March 15, 2023, Twitter Inc ceased to be an individual and subsequently ceased to be a social media companies supplier. It was argued that Twitter Inc subsequently lacked the power to adjust to the discover and that X Corp had no obligation to arrange any report on behalf of Twitter Inc as a result of X Corp was not the identical individual because the supplier to whom the discover was given.
This assertion just isn’t new to entities owned by Elon Musk. CEO Linda Yaccarino has additionally repeatedly claimed that X is a “model new firm” to keep away from scrutiny. She repeated the phrase a number of instances throughout a Senate listening to on youngster security earlier this yr.
Nevertheless, Australian Federal Decide Michael Wheelahan discovered this argument unpersuasive and stated X’s argument required a “logical leap that was not supported by sufficient clarification”. X didn’t instantly reply to a request for remark.
Digital Security Commissioner Inman Grant welcomed the choice. “If X Corp’s argument is accepted by the courtroom, it might set a worrying precedent whereby the merger of a overseas firm with one other overseas firm might allow it to evade Australia’s regulatory obligations,” Grant stated.