Virtual entertainment giant X said on Thursday that it anticipates Brazil's top court will order it to shut down, as a heated legal battle continues over compliance with local regulations and owner Elon Musk's claim that the platform is being punished for opposing regulation.
X stated it expected Justice Alexandre de Moraes of the Supreme Court to order the shutdown "soon," after a court-imposed deadline for the company to appoint a legal representative in Brazil passed on Thursday night. Despite this, X was still operational in the country just before midnight.
Earlier on Thursday, the Supreme Court blocked the local bank accounts of Musk’s Starlink satellite internet firm, while the primary dispute over X brought it to the brink of being shut down in one of its top markets.
Both companies are part of Musk's sprawling business empire, which also includes the rocket company SpaceX and electric vehicle giant Tesla. Musk owns X and 40 percent of SpaceX and is the CEO of Tesla.
In a series of Thursday night posts on X, Musk attacked Moraes, calling the judge an "evil tyrant" in a newly pinned post. He also criticized the decision to block Starlink as illegal and claimed the action "unfairly" punishes other investors as well as ordinary Brazilians.
Musk also announced that Starlink-parent SpaceX will provide free internet access to Brazilian users "until this matter is resolved."
Falsehoods and Censorship
Endorsed by Moraes, the court's decision to target Starlink is a response to the lack of legal representatives in Brazil for X, a Supreme Court source told Reuters. The decision to freeze Starlink's bank accounts also stems from a separate dispute over unpaid fines X was ordered to pay for failing to turn over certain documents. Local paper Folha reported that the fines total at least 20 million reais ($3.6 million), though Reuters could not confirm the amount.
The Supreme Court had set a deadline for X to name its legal representative in Brazil by shortly after 8:00 p.m. (2300 GMT) on Thursday. Brazilian law requires all internet companies to have a legal representative in the country who can receive legal orders and otherwise be legally accountable for the business.
The escalating dispute centers on whether Moraes can order X to block specific accounts accused of spreading false information and misinformation, a request Musk has condemned as censorship. Most of the accounts requested for blocking are controlled by supporters of former President Jair Bolsonaro, some of which deny his loss in the 2022 re-election bid.
In a previous post, Musk complained that Moraes "is a criminal of the worst kind, masquerading as a judge." Starlink, in its own post, accused the judge of issuing the order in secret without due process.
Judge vs. Billionaire
The combined digital and legal disputes could lead X to lose one of its largest and most sought-after markets, as Musk has struggled with advertising revenue for the platform.
Recently, X announced it would cease operations and lay off staff in Latin America's largest economy due to what it called "restrictive orders" from Moraes, while keeping its service available for Brazilian users. At the time, X claimed Moraes had secretly threatened one of the company’s legal representatives in Brazil with arrest if it did not comply with legal orders to remove certain content.
In his own criticism of X, Brazil’s President Luiz Inácio Lula da Silva pinned a post to the platform late on Thursday, listing six other social media accounts along with links to them.
Moraes has emphasized that companies that do not comply with local laws or respect privacy may face temporary suspensions of their activities.
Recently, the judge ordered X to block certain accounts involved in investigations into alleged digital militias accused of spreading misinformation and hate during Bolsonaro's term in office.
After Musk challenged this decision and said he would reactivate accounts that Moraes had ordered blocked, Moraes initiated an investigation into Musk’s companies in April. X representatives eventually reversed course and told the Supreme Court it would comply with the orders. However, in April, Moraes asked X to explain why it had not fully complied. X’s lawyers cited "operational issues" that allowed users ordered blocked to remain active on the platform.
Amid the high-stakes standoff, many Brazilians took to X to downplay the saga, including thousands who posted creative memes featuring the outspoken judge and the controversial billionaire.
Some X users criticized the decision endorsed by Moraes, arguing it undermines freedom of speech, while others supported Moraes, insisting that Musk should adhere to Brazilian law. X, formerly known as Twitter, is widely used in Brazil and is a significant communication channel, especially for politicians.
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