Without proof of the union of Musk’s business and personal activities, the satellite internet company could not be held liable for X
The decision by STF minister Alexandre de Moraes to block the bank accounts of Starlink, Elon Musk’s satellite internet company, is seen as controversial by legal professionals interviewed by Poder360.
Moraes froze the internet company’s financial assets after the Court failed to subpoena a legal representative in Brazil of X (formerly Twitter), who is also Musk’s – investigated in Survey 4,957 for alleged participation in the crimes of obstruction of justice, criminal organization and incitement to crime.
The Supreme Court minister blocked Starlink’s accounts to ensure payment of the fines imposed on X. He considered the existence of a “de facto economic group” linked to Musk to justify the decision. In the opinion of lawyers, however, this is not clear.
Below, read the points considered controversial:
- lack of clarity about the connection between Starlink and X – the former public prosecutor Lenio Streck says that the Court can issue a more comprehensive order, but that it is necessary to prove that the two companies are part of the same economic group: “It is necessary to share the same administrative command and union between business activities and the personal activities of its directors”;
- Musk’s subpoena did not name Starlink – “While X is responsible for the social network previously called ‘Twitter’, Starlink would be responsible for providing internet, with a valid concession approved by Anatel. Restricting access to your bank account affects not only the company’s management, but the entire group of employees, as well as users of the services provided”says the lawyer specializing in corporate criminal law, Henry Zigart.
Read more about Moraes X Starlink:
THE STRENGTH OF STARLINK: HOW IT WORKS IN BRAZIL
Elon Musk’s company is currently the largest satellite internet provider in the country. It holds more than 42% of the market in the segment, with 215 thousand customers. Among them are schools, government offices, villages and entire communities in the Amazon, vessels and Armed Forces bases.
Considering all internet providers in the country, adding up all technologies, Starlink is the 16th largest, with 0.4% of the Brazilian broadband market. Most of its customers (69,612) are in the North region. And in 2nd place is the Southeast (63,097).
The data comes from Anatel (National Telecommunications Agency), which granted an operating license to Starlink in 2022. The company can offer its services in the country until 2027.
Starlink has been gaining traction by promising faster internet at more affordable prices than many of its competitors. An arm of SpaceX, Musk’s space exploration company, the company uses satellites closer to Earth, which makes data transfer and navigation faster.
The Starlink satellites launched by SpaceX are at an average distance of 550 km from Earth. On average, the other satellites are 35,000 km from the Earth.
With technology, the company can reach places where other forms of connection are economically unviable, such as rural areas, small towns, in dense forests like the Amazon, on boats and the high seas or planes moving in the sky.
Currently, a consumer who wants to sign up for Starlink internet at home needs to pay between R$1,200 and R$2,400 for the equipment – a kit with an antenna, router and cables. The monthly fee for the service costs R$184, according to the company’s website.
Prices vary according to the customer’s profile. For vessels, for example, the cost of equipment is R$12,830, and the monthly fee is R$1,283.
Read more about Moraes X Musk:
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