Mr. Musk labelled Australia's eSafety Commissioner Julie Inman Grant (a former Twitter employee), the "Australian censorship commissar," after she issued an order to X to take down videos related to the alleged stabbing of a Christian bishop.

X says it had removed all posts domestically, but the commissioner's order calls for the removal of content around the world.

X is planning to challenge this in court, and said the posts did not violate its rules on "violent speech" - content that incites or glorifies violence.

Shadow Minister Says Musk Being 'Irresponsible'

However, the Liberal Party's Shadow Foreign Minister Simon Birmingham called X's contention a "completely ridiculous and preposterous argument."

"The type of standards that we expect in everyday life that we expect in other forms of media should be able to be applied to the online world as well," Mr. Birmingham said on ABC News Breakfast on April 22.

"The idea that it is censorship to say that imagery of a terrorist attack, of a stabbing incident should not be able to be broadcast in an unfiltered way for all to see—children to access and otherwise—is an insulting and offensive argument."

The senator also argued Mr. Musk's argument was "irresponsible" given the impact of the social media posts on potential terrorists.

"It is also an irresponsible one when you consider the implications that can have for inspiring potentially future terrorists, for creating discord and disharmony in communities, and driving people further apart when such images are manipulated or used with propaganda or other information," he said.