Elon Musk’s X Faces Possible Shutdown in Brazil Amid Legal Dispute
Enormous social networking site X stated on Thursday that it expects shut down orders by Brazil's highest court. This comes amid a fierce legal dispute about the platform's adherence to local laws and Elon Musk's claim that it is being penalized for defying censorship.
According to Reuters, X said it expected Supreme Court Judge Alexandre de Moraes to order the shutdown "soon," after a court-imposed deadline for the company to identify a legal representative in Brazil passed on Thursday evening.
Earlier on Thursday, the Supreme Court closed the local bank accounts of billionaire Elon Musk's Starlink satellite internet company, putting it in danger of being shut down in one of its main markets due to the ongoing dispute over X.
The two companies are a part of Musk's vast corporate empire, which also includes the electric vehicle behemoth Tesla and the rocket company SpaceX. The billionaire owns X and 40% of SpaceX and is the CEO of Tesla.
Musk attacked SC Judge on X
On Thursday night, Musk attacked Moraes in a string of remarks on X, calling the judge an "evil dictator". Along with calling the decision to shut down Starlink unlawful, he also said that it "improperly" punishes both common Brazilians and other stockholders.
Additionally, according to Reuters, Musk declared free internet connection from Starlink parent company SpaceX for Brazilian customers "until this matter is resolved."
Reason behind Supreme Court’s Judgment
The judgment by the Supreme Court to penalize Starlink is a result of X's noncompliance with Brazilian legal obligations, such as designating a legal counsel. In addition, Starlink's bank accounts have been frozen because of unpaid fines for failing to provide necessary documentation; sources place the penalty at about 20 million reais ($3.6 million).
Legal regulations in Brazil mandate that internet businesses appoint a local attorney to oversee court orders. At the core of the dispute are Judge Moraes's orders to X, to delete accounts related to far-right followers of former President Jair Bolsonaro.
Musk has denounced these rulings as censorship and referred to Judge Moraes as an "outright criminal."