The Federal Supreme Court (STF) in Brazil has suspended Elon Musk's social media network after it failed to comply with orders from Minister Alexandre de Moraes to block the accounts of those investigated by the Brazilian justice system.
Chris Vaga | norphoto | Getty Images
X must pay one final fine before the Elon Musk-owned social network is allowed to return online in Brazil, according to a decision issued on Friday by the country's highest judge, Alexandre de Moraes.
The platform was suspended nationwide at the end of August, a decision that was upheld by a panel of judges on September 2. Earlier this month, X filed papers informing Brazil's Supreme Court that it was now in compliance with the orders, which it had previously defied.
As reported by Brazilian newspaper G1 Globo, X must now pay a new fine of 10 million reais (about $2 million) for two additional days of non-compliance with court orders. X's legal representative in Brazil, Rachel de Oliveira, must also pay a fine of 300,000 reais.
The case dates back to April, when de Moraes, the minister of Brazil's Supreme Court, known as the Supreme Federal Court (STF), began an investigation into Musk and X over alleged obstruction of justice.
Musk had pledged to defy court orders to close certain accounts in Brazil. He described the court proceedings as “censorship”, criticized De Moraes online, called the judge a “criminal”, and encouraged the United States to end foreign aid to Brazil.
In mid-August, Musk closed X's offices in Brazil. This left his company without a legal representative in the country, which is a federal requirement for all tech platforms to do business there.
By August 28, the court threatened de Moraes with bans and fines if
Earlier this month, the STF froze the business assets of Musk's companies, including Company X and satellite internet company Starlink, operating in Brazil. The STF said in court filings that it views SpaceX and X, Starlink's parent company, as two companies that operate together as related parties.
“Unless the Brazilian government returns the illegally seized property to SpaceX, we will seek reciprocal seizure of government assets as well,” Musk wrote in a post on X at the time.
On August 29, 2024, in Brazil, the Minister of the Supreme Court, Alexandre de Moraes, ordered the blocking of the accounts of another company, Starlink, belonging to Elon Musk, to ensure the payment of fines imposed by the STF due to the lack of X representatives in Brazil.
tons molina | norphoto | Getty Images
As head of the STF, De Moraes has long supported federal regulations to rein in hate speech and misinformation online. His views have drawn opposition from technology companies and far-right officials in the country, along with former President Jair Bolsonaro and his supporters.
Bolsonaro is under investigation on suspicion of orchestrating a coup in Brazil after losing the 2022 presidential elections to current President Luiz Inacio Lula da Silva.
While Musk has called for retaliation against de Moraes and Lula, he has worked with and praised Bolsonaro for years. The former president of Brazil has allowed SpaceX to offer satellite internet services commercially in Brazil in 2022.
Musk considers himself a free speech advocate, but his record suggests otherwise. Under his direction, X removed content critical of ruling parties in Türkiye and India at the government's insistence. X approved more than 80% of government takedown requests in 2023 during a similar period the previous year, according to an analysis by technology news site Rest of World.
X faces increasing competition in Brazil from social apps such as Meta-owned Threads and Bluesky, which attracted users during his suspension.
Starlink also faces competition in Brazil from eSpace, a French-American company that received permission this year from the National Telecommunications Agency (Anatel) to offer satellite Internet services in the country.
Lucas Darin, a lawyer and law professor at Brazil's Facex University Center, told CNBC that the STF's enforcement actions against X will likely change the way big tech companies view court.
“There is no change in the law here,” Darren wrote in a letter. “But specifically, big tech companies now realize that the laws will apply regardless of the size of the company and the size of its footprint in the country.”
Musk and X representatives did not immediately respond to a request for comment on Friday.
Late Thursday, X Global Government Affairs posted the following statement:
“X Company is committed to protecting freedom of expression within the bounds of the law and we recognize and respect the sovereignty of the countries in which we operate. We believe that the people of Brazil having access to X service is essential to a thriving democracy, and we will continue to defend freedom of expression and due process through legal action.”
Watch: X is a financial “disaster.”
