Australia's online regulator has ceased its legal efforts to compel Elon Musk's X platform to remove a disturbing video of a church stabbing incident in Sydney.

eSafety Commissioner Julie Inman revealed on Wednesday that dropping the case was aimed at ensuring the best possible outcome for online safety in Australia, particularly for children.

“Our primary intention in issuing the removal notice was to prevent the spread of this very violent footage, which could provoke further violence and cause more harm to Australian society. I fully support my team at eSafety and the decisions that were made,” Inman stated in a release.

“Most Australians believe that such graphic content shouldn't be on mainstream television, raising the obvious query of why it should be freely circulating online, accessible to anyone, including minors,” she continued.

Inman welcomed a chance for a merits-based review of her takedown notice by the Administrative Appeals Tribunal of the country.

X, previously known as Twitter, appreciated the government's move.

“This case has highlighted substantial issues regarding the use of legal authority to potentially enforce global speech censorship. We are pleased that freedom of speech has emerged victorious,” stated the social media platform.

X had defied an eSafety notice to remove the video of a non-lethal stabbing of Assyrian Orthodox Bishop Mar Mari Emmanuel during a live sermon, maintaining that restricting access solely for Australian users should be adequate.

Prime Minister Anthony Albanese condemned Musk's non-compliance with the notice, branding him an “arrogant billionaire who believes he is above the law and basic decency.”

In April, Australia’s Federal Court temporarily directed X to conceal the video worldwide, which the platform declined to comply with, and a judge recently refused an extension of this order.

Law enforcement charged a 16-year-old with "committing a terrorist act" in connection with the April 15 attack on Emmanuel, labeling it as religiously motivated.