Malaysia: Malaysian Communications and Multimedia Commission announced commencement of legal action against X Corp and xAI over failure to prevent harmful and non-consensual AI-generated content

Description

Malaysian Communications and Multimedia Commission announced commencement of legal action against X Corp and xAI over failure to prevent harmful and non-consensual AI-generated content

On 13 January 2026, the Malaysian Communications and Multimedia Commission (MCMC), in cooperation with the Ministry of Communications, initiated legal action against X Corp. and xAI LLC over alleged failures to ensure user safety in Malaysia linked to the deployment of the Grok AI chatbot. The action applies to X's operation of generative Artificial Intelligence (AI) services following the identification of harmful and unlawful content, including explicit sexual material, obscene content, non-consensual manipulated images, and content allegedly involving women and children. The Commission stated that liability may arise even where content is user-generated, citing the companies’ control over system design, deployment, and safeguards, as well as failures to enforce internal policies and comply with removal notices issued on 3 and 8 January 2026. The MCMC noted that legal counsel has been appointed, and formal proceedings are expected to commence shortly.

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Scope

Policy Area
Content moderation
Policy Instrument
Content moderation regulation
Regulated Economic Activity
platform intermediary: user-generated content, ML and AI development
Implementation Level
national
Government Branch
executive
Government Body
other regulatory body

Complete timeline of this policy change

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2026-01-03
under deliberation

On 3 January 2026, the Malaysian Communications and Multimedia Commission (MCMC) opened an investig…

2026-01-11
under investigation

On 11 January 2026, the Malaysian Communications and Multimedia Commission (MCMC) issued a temporar…

2026-01-13
under deliberation

On 13 January 2026, the Malaysian Communications and Multimedia Commission (MCMC), in cooperation w…

2026-01-23
under investigation

On 23 January 2026, the Malaysian Communications and Multimedia Commission (MCMC) lifted the tempor…