Elon Musk’s X remains banned in Brazil following the country’s withdrawal of $3.3 million from the bank accounts of both the social media platform and the satellite-based internet service provider, Starlink, to cover fines.
The fines stem from the tech billionaire’s failure to comply with Brazil’s Supreme Court, as the owner of X engages in a dispute with Brazilian Supreme Court Justice Alexandre de Moraes regarding content on the social media platform previously known as Twitter. Musk’s company did not actively pay the fine.
Why is Brazil targeting Starlink?
Justice Moraes ruled that Starlink could be liable for X’s fines because they belong to the same “de facto economic group.” Although some Brazilian legal experts have challenged this interpretation, the court noted that the two companies failed to appeal before the deadline.
Starlink had asked the court to unfreeze its assets, but another Brazilian Supreme Court justice quickly rejected the request.
Musk labeled the freezing of Starlink’s assets as “absolutely illegal,” pointing out that the satellite service is a subsidiary of the private space firm SpaceX. He noted that he owns 40 per cent of SpaceX, and company filings reveal that he also holds a majority of the voting shares.
SpaceX and X are two completely different companies with different shareholders. I own about 40% of SpaceX, so this absolutely illegal action by the dictator @alexandre improperly punishes other shareholders and the people of Brazil. https://t.co/zIzcT0BTJl
— Elon Musk (@elonmusk) August 29, 2024
Earlier this month, ReadWrite reported that Starlink had told regulators it would not comply with blocking the social network and would allow its 250,000 users in Brazil to keep using X. However, two days later, facing the potential loss of its license in the country, Starlink agreed to block the site.
Brazil blocked the platform after it failed to appoint a legal representative. Brazil had over 21.48 million X users as of April 2024, all of whom are now being prevented from accessing the platform. When a user in Brazil attempts to access the site they are met with a connectivity error message.
The latest dispute started in April when Musk responded to Justice Moraes’ investigation into the spread of misinformation, particularly regarding its potential impact on Brazil’s 2022 election, by announcing he would reactivate X accounts that Moraes had ordered to be shut down. Subsequently, Moraes began an investigation into Musk and X for potential obstruction of justice.
ReadWrite has reached out to X for comment.
Featured image: Midjourney
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