Tensions between South African tycoon Elon Musk, owner of the social network X (formerly Twitter), and the Brazilian judiciary continue to rise and have even spread to the president of Brazil, Luiz Inácio Lula da Silva, on the day the social network could be suspended in the country.
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The dispute, which centers on compliance with local laws, sparked a series of legal measures that threaten to block X’s access to one of its most important markets.
On Friday, Lula stressed that Elon Musk must comply with court orders issued by Brazil’s Supreme Court (the Supreme Federal Tribunal, STF).
“Every citizen who has investments in Brazil is subject to the Brazilian Constitution and its laws,” the president said in an interview.It’s not because the guy has a lot of money that he can be disrespectful. He’s an American citizen, not a citizen of the world. He can’t go around insulting presidents. He offends Congressmen, the Senate, the House, the Supreme Court. What does he think he is? He has to respect the decision of the Supreme Court of Brazil.”
Every city that invests in Brazil is subject to Brazilian legislation and Constitution. It’s not because the money you can make or want. He must oil the country’s laws and respect the Supreme Court’s decision. This is not a country with a complex vira-lata.…
— Lula (@LulaOficial) August 30, 2024
X was still operating normally in Brazil on Friday morning, but the platform said Thursday it expected STF Judge Alexandre de Moraes to order a shutdown “soon,” after a court-imposed deadline for the company to appoint a legal representative in Brazil expired.
A conflict that intensifies
The root of the conflict lies in a series of court orders issued by Judge Alexandre de Moraes that forced the social network X to appoint a legal representative in Brazil, something the company refused to do.
Since April, Moraes has accused Musk of censoring public debate in Brazil and, after X refused to comply with the orders, the judge has proceeded to freeze the bank accounts of Starlink, Musk’s satellite internet company, as part of a series of economic sanctions.
In June, the STF signed an agreement to combat disinformation with six social media platforms – YouTube, Google, Meta, TikTok, Microsoft and Kwai – but X was not involved in the agreement.
The company has since found itself at the centre of a dispute with Judge De Moraes. Earlier this week, Musk publicly denounced the judge’s actions as “illegal” and said they “unduly” punished both other shareholders and ordinary Brazilian citizens.
Blockade
The situation came to a head this week when Judge Moraes imposed a 24-hour deadline for X to appoint a new legal representative in Brazil. Earlier this month, X withdrew her legal representative on the grounds that De Moraes had threatened to arrest her.
Given the lack of response, the Court is expected to order the closure of the social network in the country on Friday.
“It is unacceptable that X, unlike other platforms, refuses to comply with Brazilian laws,” Moraes said during a hearing. “If they do not comply, we will suspend their operations.”
X, for its part, has maintained a defiant stance, stating that it will not submit to what it considers to be “illegal orders” from the court.
“We remain committed to protecting freedom of expression,” the platform said in a statement. “To our users in Brazil and around the world, X will continue to defend your rights.”
Under Brazilian internet laws, social networks must have a representative in the country. To shut down X’s operations in Brazil, Judge Moraes would have to order telecommunications companies to stop carrying the social network’s traffic. Users, however, could circumvent the block by using VPNs.
Crucial market
Brazil is a crucial market for X, with around 40 million monthly active users, representing a fifth of the population. The social network is particularly influential among Brazilian politicians, and its suspension would have significant consequences for the country’s digital communication sphere.
The conflict also comes amid growing concerns about disinformation, especially during election periods. Luca Belli, coordinator of the Getulio Vargas Foundation’s Center for Technology and Society, told the Associated Press that “X’s refusal to appoint a legal representative is particularly problematic on the eve of municipal elections in October in Brazil, where a high circulation of fake news is expected.”
The decision to suspend X could also trigger a domino effect across other services in Musk’s sprawling Brazilian empire, such as Starlink, which has already faced economic sanctions amid the conflict. Meanwhile, the country is anxiously waiting to see whether Musk, a self-described “free speech absolutist,” will change his position or whether Judge Moraes will keep a firm hand against the billionaire.
Earlier this year, Musk attempted to seek international support for his dispute with Brazil by asking Argentine President Javier Milei to intervene in the conflict. The American tycoon asked Milei to use his diplomatic influence to mediate between the social network X and the Brazilian government, in an effort to avoid sanctions imposed by Brazil’s supreme court. However, Milei’s intervention failed to change the course of events.
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