On Thursday, a dramatic escalation in the legal battle between Elon Musk and Brazil’s Supreme Court took place. The court, led by Judge Alexandre de Moraes, imposed a financial freeze on Starlink, a subsidiary of SpaceX, owned by Musk. This move is a direct consequence of a wider dispute that could potentially see X, Musk’s social media platform formerly known as Twitter, suspended in Brazil.
The court’s decision is rooted in X’s failure to comply with legal requirements in Brazil. Specifically, the court highlighted X’s lack of legal representatives in the country, as well as its failure to pay fines levied for refusing to provide certain documents. Starlink has confirmed receipt of the order, which effectively prevents the company from conducting any financial transactions within Brazilian borders.
Musk reacted swiftly and strongly to the court’s decision, taking to X to lambast Judge de Moraes as a “criminal wearing judges robes like a Halloween costume.” He further emphasized that SpaceX and X are entirely separate entities, with distinct shareholder groups. Musk owns approximately 40% of SpaceX, and he argued that the court’s action unfairly penalizes other shareholders.
The Supreme Court has issued an ultimatum to X: appoint a legal representative in Brazil by 8:07 p.m. (2307 GMT) on Thursday. At the heart of this conflict lies the court’s attempt to compel X to block accounts accused of disseminating misinformation. Musk vehemently opposes this action, characterizing it as censorship. Failure to comply with the court’s directives could result in the suspension of X’s operations in Brazil, one of its largest markets.
This development adds to Musk’s growing challenges with X, particularly in the realm of advertising revenue. The platform recently announced plans to halt operations and lay off staff in Brazil, citing “censorship orders” from Moraes. However, X reassured users that its services would remain accessible within the country despite these operational changes.
The ongoing legal battle between Elon Musk and the Brazilian judiciary raises significant questions about free speech, online content moderation, and the role of social media platforms in democratic societies. The outcome of this dispute could have far-reaching consequences for X’s global operations and the future of online expression in Brazil.
