X is on the brink of being shuttered in Brazil as a legal battle intensifies between the company’s owner, Elon Musk, and Brazil’s Supreme Court. The dispute centers around compliance with local laws and accusations of censorship.
On Thursday, X announced it expects Supreme Court Judge Alexandre de Moraes to order its shutdown in Brazil after the company failed to meet a court-imposed deadline to identify a legal representative in the country. Brazilian law requires all internet companies to have a local legal representative.
The conflict between Musk and de Moraes has been brewing for months, with the justice leading a crackdown on what he considers misinformation and disinformation in Brazil. De Moraes has ordered the suspension of over 100 X accounts in recent years, many belonging to supporters of former President Jair Bolsonaro.
Sponsored · Granada Gold Mine Inc.
Musk, who likes to describe himself as a free speech absolutist, denounced these orders as censorship and initially refused to comply.
In response, de Moraes opened an inquiry into Musk’s businesses in April. The judge has also blocked the local bank accounts of Musk’s Starlink satellite internet firm, further complicating the situation.
Musk has been vocal in his criticism, calling de Moraes an “evil dictator” and accusing him of violating Brazil’s constitution.
The dispute has broader implications for X’s operations in Brazil, one of its largest markets. Earlier this month, the company announced plans to close its operations and fire staff in the country due to what it termed “censorship orders” from de Moraes.
Also read: EU Warns Elon Musk’s X Over Trump Interview
Supporters of de Moraes argue his actions are necessary to safeguard democracy in the face of rampant disinformation, while critics, including right-wing allies of Bolsonaro, accuse him of overstepping his authority to suppress political opponents.
As the deadline passed on Thursday evening, X appeared to function normally in Brazil.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
