Brazil’s supreme court issued a nationwide suspension of Elon Musk’s social network X after the company defied court orders regarding content moderation and the appointment of a legal representative in the country. Alexandre de Moraes, the court’s top judge, also ordered daily fines for individuals or businesses in Brazil using VPNs to access X while it is banned. The court stated that the suspension will remain until the company complies with judicial decisions and pays the fines, including appointing a representative in Brazil. Failure to comply may result in a penalty of suspension of activities.
The court had given Musk and X 24 hours to appoint a legal representative in Brazil or face penalties, but the deadline passed without compliance. X’s global government affairs unit announced that it expected a shutdown soon as the company refused to follow the court’s orders. Under Brazilian law, social media companies must have a representative to handle government takedown notices, including those related to misinformation and incitements to violence. X does not have a representative in Brazil and announced plans to remove all employees instead of facing possible arrests over non-compliance with court orders. This suspension could have business implications for Musk and X in Brazil where there are over 171 million active social media users.
Musk’s Twitter acquisition in 2022 led to significant changes and the reinstatement of previously banned accounts, resulting in major advertisers withdrawing or reducing ad spending. The World Bank stopped advertising on X after an investigation found their ads next to racist content. Musk criticized de Moraes after the court froze the finances of Starlink, his satellite internet service in Brazil. Musk has encouraged the use of Starlink to access X and compared de Moraes to the villain Voldemort, claiming the Brazilian regime is afraid of the truth reaching the people and bankrupts anyone who tries.
Representatives for X and the U.S. embassy in Brazil did not immediately respond to the suspension news. Musk has consistently criticized de Moraes’ court orders as censorship and unlawful actions against the company. X stated that de Moraes’ court had taken illegal actions, and Musk accused the Brazilian regime of being oppressive and afraid of people learning the truth. The court’s orders were sent to Brazil’s telecommunications agency, Anatel, which then requested providers to block access to X in the country, including Starlink among others.
The fallout between Musk, X, and the Brazilian supreme court highlights the challenges faced by social media companies operating in foreign countries with specific legal and regulatory requirements. The suspension of X in Brazil poses economic risks for Musk’s company, given the significant user base in the country. Musk’s confrontational approach towards the court’s actions may further escalate the situation and impact his other ventures in Brazil. It remains to be seen how this conflict will be resolved and whether X will comply with the court’s orders in the near future.
