X Faces Suspension in Brazil Amid Legal Clash between Musk and Brazil’s Supreme Court

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  • Musk criticized Brazil’s Supreme Court justice over legal orders against X Corp.
  • The court fined X and froze Starlink’s finances in Brazil.
  • This dispute may lead to X being suspended in Brazil.

Elon Musk, the leader of Tesla, SpaceX, and X Corp. (formerly Twitter), has launched a public campaign against Brazilian Supreme Court Justice Alexandre de Moraes. The conflict began when the court ordered X to appoint a legal representative in Brazil within 24 hours, threatening to suspend the platform’s operations in the country if it failed to comply.

Musk’s Public Criticism

Musk responded by attacking de Moraes on X, posting a manipulated image of the judge behind bars with the caption, “One day, @Alexandre, this picture of you in prison will be real.” Musk has accused de Moraes of being a “tyrant” and a “dictator of Brazil,” while also criticizing Brazil’s President Luiz Inácio Lula da Silva, calling him de Moraes’ “lapdog.”

“Earlier this week we received an order from Brazil’s Supreme Court Justice @alexandre de Moraes that freezes Starlink’s finances and prevents Starlink from conducting financial transactions in that country,” the company said in a post late Wednesday.

Court Orders and Financial Sanction

“This order is based on an unfounded determination that Starlink should be responsible for the fines levied—unconstitutionally—against X,” the company said. “It was issued in secret and without affording Starlink any of the due process of law guaranteed by the Constitution of Brazil. We intend to address the matter legally.”

De Moraes’ court has fined X for alleged violations of Brazilian law and has frozen the finances of Starlink, a SpaceX-owned company, in Brazil to ensure those fines are paid. This move has escalated tensions, as Musk’s companies face significant financial and operational challenges in the country.

X Corp. has announced plans to publish all of de Moraes’ demands, which it claims are illegal, along with related court filings. This move is intended to promote transparency as the company prepares for a potential suspension in Brazil.

Social Media Regulations

The court’s demands are rooted in Brazil’s social media regulations, which require platforms to have a legal representative in the country. These regulations are particularly crucial as Brazil prepares for municipal elections in October, and the government needs to monitor and control political misinformation.

Starlink, a satellite internet service operated by SpaceX, has been targeted by the court as part of its efforts to enforce penalties against X. The company criticized the court’s actions, calling them “unconstitutional” and vowing to address the matter legally.

Political and Legal Implications

The conflict has political undertones, with Musk’s past connections to former Brazilian President Jair Bolsonaro, a right-wing ally who supported Musk’s ventures in Brazil. Bolsonaro’s supporters have rallied behind Musk, further fueling the controversy.

The Brazilian Supreme Court, under de Moraes, has also initiated an investigation into Musk and X Corp. for allegedly obstructing justice. This investigation is part of a broader inquiry into digital militias—groups accused of spreading misinformation to undermine democratic institutions in Brazil.

U.S. Involvement and Global Implications

The U.S. House Judiciary Committee has subpoenaed X Corp. to provide information about Brazil’s court orders related to content moderation. The committee, concerned about censorship, has made public the details of these orders, which include requests to suspend or remove around 150 user accounts from the platform.

A suspension of X in Brazil, which has over 171 million active social media users, could have severe business implications for the platform. This situation underscores the broader challenges tech companies face in navigating complex international regulations while maintaining their operations and financial stability.

This ongoing clash between Musk and Brazil’s highest court highlights the intersection of law, politics, and technology in an increasingly interconnected world.

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Source: CNBC