Social media giant X has warned of a potential shutdown in Brazil as it faces an escalating legal battle with the country’s Supreme Court over local compliance issues.
X anticipates that Judge Alexandre de Moraes may soon order the platform’s closure following a court-imposed deadline for appointing a legal representative in Brazil.
On Thursday, the Supreme Court took action by freezing the bank accounts of Starlink, a satellite internet company owned by Elon Musk.
This move is part of the ongoing dispute involving X, with the court’s decisions adding pressure on Musk’s business empire, which includes SpaceX and Tesla.
Musk has criticized Judge Moraes, labeling him an “evil dictator” and accusing him of illegal actions that unfairly affect other shareholders and ordinary Brazilians.
He announced that SpaceX will offer free internet service through Starlink in Brazil until the dispute is resolved.
The Supreme Court’s decision to freeze Starlink’s accounts relates to unpaid fines and the failure of X to provide required documents.
The court has mandated that X name its legal representative in Brazil by Thursday evening, as Brazilian law requires internet companies to have a local representative to handle legal matters.
The controversy centers on whether Moraes can compel X to block accounts accused of spreading false information, a move Musk has denounced as censorship.
The accounts in question are linked to supporters of former President Jair Bolsonaro, who dispute the outcome of the 2022 election.
X’s legal troubles come at a time when the platform is already struggling with advertising revenue.
Earlier this month, X announced plans to close its Latin American operations due to what it termed “censorship orders” from Moraes, although it would continue to serve Brazilian users.
President Luiz Inácio Lula da Silva has also weighed in, posting on X to highlight other controversial social media accounts.
Meanwhile, public reactions in Brazil are mixed, with some users defending Moraes and others criticizing him for allegedly infringing on free speech.
