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Brazil Suspends Elon Musk’s X After Legal Battle Escalates

The Brazilian Supreme Court has suspended Elon Musk's social media platform X after Musk refused to appoint a legal representative. The escalating feud over free speech and misinformation could have significant implications for tech companies in Brazil.

Elon Musk speaks at the Milken Institute’s Global Conference at the Beverly Hilton Hotel on May 6, 2024, in Beverly Hills, California. | Apu Gomes/Getty Images

The Brazilian Supreme Court has ordered the suspension of Elon Musk’s social media platform X in Brazil due to Musk’s refusal to appoint a legal representative in the country. This decision, made by Justice Alexandre de Moraes, marks a significant escalation in the ongoing feud between Musk and the Brazilian judiciary, primarily over issues of free speech, far-right accounts, and misinformation.

Background of the Legal Dispute

The conflict between Musk and de Moraes began when the Supreme Court justice demanded that X appoint a legal representative in Brazil, a requirement under Brazilian law to facilitate legal notifications. After Musk failed to comply with this order, de Moraes issued a warning that X could be blocked if it did not meet the 24-hour deadline. X, previously known as Twitter, has not had a representative in Brazil since earlier this month.

In response to Musk’s non-compliance, de Moraes ordered internet service providers and app stores to block access to X within five days. He also imposed daily fines of 50,000 reais ($8,900) on individuals or companies using virtual private networks (VPNs) to bypass the ban.

Musk’s Defiance and Response

Musk, a staunch advocate for free speech, has criticized de Moraes’ actions as censorship and has publicly insulted the judge on multiple occasions. X’s official Global Government Affairs page accused de Moraes of using illegal orders to silence political opponents, alleging that the judge threatened to imprison the company’s former Brazilian legal representative and froze her bank accounts.

Impact on X and Broader Implications

Brazil is a crucial market for X, with approximately 40 million users, but the platform has faced challenges since Musk acquired it in 2022. The suspension of X in Brazil could have significant financial repercussions for Musk’s social media venture, particularly as the company has already been struggling with a loss of advertisers.

This isn’t the first time Brazil has taken drastic action against a social media platform. Similar moves were made against WhatsApp in 2015 and 2016, and against Telegram in 2022, when the latter eventually complied by appointing a local representative to avoid a shutdown.

Starlink and Broader Economic Impact

In a related development, de Moraes also froze the finances of Starlink, Musk’s satellite internet service, preventing it from conducting transactions in Brazil. This was due to X’s inability to cover mounting fines. Musk reacted strongly, calling de Moraes a “criminal” and promising to provide free internet service in Brazil through SpaceX until the legal matter is resolved.

Looking Ahead

As the legal battle unfolds, the situation raises critical questions about the balance between free speech and legal compliance, particularly in a country where social media plays a vital role in political discourse. The outcome could set a precedent for how international tech companies operate in Brazil and other countries with stringent legal requirements for foreign corporations.

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