Social media company X, formerly known as Twitter, is bracing for a potential shutdown in Brazil, one of its key markets, as tensions escalate over compliance with local laws. The company expects Brazil’s Supreme Court judge, Alexandre de Moraes, to order the shutdown soon, following a missed deadline for X to appoint a legal representative in the country.
Despite the deadline passing on Thursday evening, X was still operational in Brazil late into the night.
Earlier that day, the Supreme Court took action against another of Elon Musk’s ventures, freezing the local bank accounts of Starlink, Musk’s satellite internet firm. This move is part of a broader legal conflict involving X, which could see the social media platform cease operations in Brazil.
Elon Musk, who owns X and holds a significant stake in SpaceX, has been outspoken in his criticism of Judge Moraes. In a series of posts on X, Musk labelled Moraes an “evil dictator” and denounced the court’s ruling as illegal, claiming it unjustly punishes both shareholders and ordinary Brazilians. In response to the sanctions, Musk announced that Starlink’s parent company, SpaceX, would offer free internet service to Brazilian users until the legal issues are resolved.
The Supreme Court’s decision to sanction Starlink stems from X’s failure to comply with Brazilian law, which requires all internet companies to have a legal representative in the country. Additionally, X faces fines for not submitting required documents, with local reports indicating these fines amount to at least R64 million.
Judge Moraes has emphasised that companies operating in Brazil must respect local laws and maintain the confidentiality of private information. The conflict centres on whether X should comply with orders to block certain accounts accused of spreading misinformation and hate speech, many of which are linked to supporters of former President Jair Bolsonaro. Musk has opposed these orders, arguing that they amount to censorship.
This legal battle comes at a challenging time for Musk as X grapples with declining advertising revenue. Earlier this month, X announced plans to close its operations and lay off staff in Brazil, citing “censorship orders” from Judge Moraes. Despite this, the platform remains available to Brazilian users. Musk has accused Moraes of secretly threatening legal action against X’s representatives to enforce compliance.
Brazilian President Luiz Inacio Lula da Silva has also weighed in, using X to promote alternative social media platforms amid the ongoing dispute. The situation has sparked a lively debate among Brazilians on X, with many users posting memes and expressing opinions on both sides of the issue—some defending freedom of speech, while others insist that Musk must adhere to Brazilian law.
As this high-stakes standoff continues, the outcome could have significant implications for the future of social media regulation and corporate compliance in Brazil.