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Brazil suspends Elon Musk's social media platform X for non-compliance with local representation requirement

The full bench of Brazil's Supreme Court is expected to review the case, although no date has been set for the deliberations.

Edited By: Vaidehi Jahagirdar Brasilia (Brazil) Updated on: August 31, 2024 9:19 IST
World News
Image Source : AP Billionaire and X CEO Elon Musk

On Friday, a Brazilian Supreme Court justice ordered the suspension of Elon Musk’s social media platform, X, in Brazil after the company failed to appoint a legal representative in the country. The decision, issued by Justice Alexandre de Moraes, escalates an ongoing dispute between Musk and Brazilian authorities over issues such as free speech, misinformation, and the management of far-right accounts.

Justice de Moraes had previously warned Musk that X could face suspension if it did not comply with the requirement to name a legal representative within a 24-hour deadline. The company has not had a local representative in Brazil since earlier this month, prompting the court's action.

“Elon Musk showed his total disrespect for Brazilian sovereignty and, in particular, for the judiciary, setting himself up as a true supranational entity and immune to the laws of each country,” de Moraes wrote in his ruling.

The suspension of X will remain in effect until the platform complies with the court's orders. Furthermore, de Moraes set a daily fine of 50,000 reais ($8,900) for individuals or companies using VPNs to bypass the ban.

In a later ruling, de Moraes revised his decision to give internet service providers five days, rather than the initial immediate deadline, to block access to X. He also withdrew his directive for app stores to remove VPNs.

Brazil’s telecommunications regulator, Anatel, has been given 24 hours to enforce the suspension. Carlos Baigorri, Anatel’s chairman, assured that major service providers would act quickly, though smaller providers might need more time to comply.

The full bench of Brazil's Supreme Court is expected to review the case, although no date has been set for the deliberations.


'40 million users in Brazil uses X'

Brazil is a significant market for X, with around 40 million users, or roughly one-fifth of the population, accessing the platform monthly. Since Musk acquired the platform, formerly known as Twitter, in 2022, it has faced a decline in advertising revenue, making the Brazilian market even more crucial.

'What led to the feud'

X has expressed its discontent with the suspension, arguing that it is being penalized for refusing to comply with what it describes as “illegal orders” from de Moraes to censor political opponents. The company has also accused de Moraes of threatening its Brazilian legal representative with imprisonment, freezing her bank accounts after she resigned, and dismissing or ignoring the company’s legal challenges.

Since Musk’s acquisition, X has had multiple clashes with Brazilian authorities over compliance with local laws and content regulation. The platform has been particularly resistant to blocking certain users, including far-right politicians and activists accused of undermining democracy in Brazil.

Justice de Moraes justified his decision by pointing to Musk's own statements, which he argues suggest that X aims to continue allowing extremist and anti-democratic content on the platform. De Moraes emphasized that his ruling is based on Brazilian laws that require internet service companies to maintain local representation for legal notifications and to comply with orders to remove illicit content, especially in light of upcoming municipal elections.

'WhatsApp, Telegram too face suspension threat in Brazil'

The suspension of X is not without precedent in Brazil. In past instances, other tech giants like Meta’s WhatsApp and Telegram have also faced shutdowns or threats thereof due to non-compliance with local regulations, underscoring a broader tension between global tech companies and national jurisdictions over governance and control of digital spaces.

(With inputs from PTI)

READ MORE | Brazil Supreme Court gives 24-hour ultimatum to Elon Musk's X: 'Appoint legal representative or...'

READ MORE | Elon Musk’s X abruptly ends business in Brazil: Know-why?

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