Why did Brazil suspend Elon Musk's X operations? The legal ruling explained

The Brazilian Supreme Court's ruling mandates X to meet legal requirements, settle fines, and appoint a legal representative before resuming operations

In a dramatic escalation of tension between the Brazilian government and the social media giant X, the Supreme Court of Brazil has ordered the complete suspension of the platform's operations across the country. This move follows X's failure to appoint a legal representative within Brazil, a legal requirement for foreign companies operating in the nation.

Late on Friday, Justice Alexandre de Moraes, who has been in a prolonged dispute with X’s owner, Elon Musk, since April, issued the order for the “immediate, complete and total suspension of X’s operations.” 

The order mandates that the platform remain inaccessible in Brazil until it complies with all court orders, pays all outstanding fines, and appoints a new legal representative.

 

Justice Moraes gave Brazil’s National Telecommunications Agency a 24-hour deadline to enforce this decision. The agency, which oversees over 20,000 broadband internet providers in the country, is tasked with ensuring that each provider blocks access to X. The agency’s president, Carlos Manuel Baigorri, confirmed in an interview with Globonews that the process of passing the order to internet providers had already begun. He indicated that the suspension could be fully implemented by the end of the weekend.

The court’s order initially extended to technology giants Apple and Google, requiring them to implement barriers to prevent access to the X app on iOS and Android devices and to block the use of virtual private network (VPN) applications that could circumvent the suspension. However, later in the evening, Justice Moraes temporarily removed these requirements to avoid disrupting third-party companies until a statement from X and Musk could be obtained.

The court’s decision also imposes a daily fine of $50,000 (Rs 747,623) on individuals and companies attempting to bypass the suspension using VPNs.

Musk's defiance and escalating tensions

The conflict between Musk and Brazilian authorities reached a boiling point when the deadline for X to appoint a new legal representative expired on Thursday evening. Musk’s company announced shortly thereafter that it would not comply with the order, prompting Justice Moraes to take swift action.

Musk responded defiantly on his platform, X, accusing the Brazilian government of shutting down what he described as the “#1 source of truth” and labelling the country’s administration as an “oppressive regime” afraid of its people “learning the truth.” 

Musk vs Brazil

The origins of the dispute trace back to April when Justice Moraes ordered X to suspend several accounts allegedly involved in spreading disinformation related to former President Jair Bolsonaro's attempts to contest his 2022 election defeat. Musk’s refusal to comply with this order led to his inclusion in a broader investigation into digital militias, groups accused of promoting anti-democratic activities online.

Impact on X and Starlink in Brazil

Despite announcing the cessation of X’s operations in Brazil on August 17, the service has remained accessible to users in the country. This has been a point of contention, particularly as Musk’s other ventures in Brazil, including Starlink, his satellite and internet provider, have come under legal scrutiny. On 18 August, a day after X’s purported shutdown, Justice Moraes froze the local bank accounts of Starlink to enforce fines imposed on X for non-compliance with court orders.

Starlink, which is a dominant provider of internet services in the Amazon region, criticised the decision as illegal in an email to its customers, assuring them that services would continue without charge if necessary. On Friday, Starlink filed a petition with the Supreme Court to have its bank accounts unfrozen or, at the very least, limit the freeze to the amount equivalent to the fines against X. It remains unclear when this petition will be reviewed.

President Luiz Inacio Lula da Silva, in a radio interview on Friday morning, strongly condemned Musk’s actions, asserting that “any and all citizens from anywhere in the world who have investments in Brazil are subject to the Brazilian constitution and Brazilian laws.” 

He also emphasised that Musk must respect the Supreme Court’s decision or risk undermining Brazil’s sovereignty.

Legal experts have also weighed in, criticising the freezing of Starlink’s accounts, arguing that it is a separate entity from X and should not be penalised for matters related to the social media platform. Nevertheless, the decision reflects the Brazilian judiciary’s determination to hold Musk accountable for what it perceives as an attempt to flout the country’s laws.

(With agency inputs)