Social media company X is bracing for a potential shutdown in Brazil as a high-stakes legal battle over compliance with local regulations unfolds.
The company, formerly known as Twitter, anticipates a court order from Brazil’s Supreme Court Judge Alexandre de Moraes to shut down operations following a missed deadline for appointing a legal representative.
On Thursday evening, X was still operational in Brazil, but the situation remains precarious.
The Supreme Court’s decision to freeze the bank accounts of Starlink, a satellite internet firm owned by X’s billionaire Elon Musk, has intensified the conflict.
The court’s action against Starlink is linked to a broader dispute over X’s legal standing and compliance.
Elon Musk, who owns X and holds a 40% stake in SpaceX while serving as CEO of Tesla, has vocally criticized Judge Moraes.
In a series of posts on X, Musk denounced Moraes as an “evil dictator” and condemned the court’s actions against Starlink as illegal.
Musk announced that SpaceX would provide free internet access to Brazilian users “until this matter is resolved.”
The Supreme Court’s move to freeze Starlink’s accounts is a response to X’s failure to designate a legal representative in Brazil, a requirement under local law.
The court has also fined X, totalling R$64 million, for failing to submit requested documents.
The deadline for X to appoint its legal representative expired at 8 p.m. on Thursday, local time.
Brazilian law mandates that all internet companies have a local legal representative to handle judicial orders and other legal responsibilities.
The ongoing dispute centres on whether Judge Moraes can compel X to block accounts accused of spreading misinformation, particularly those associated with former President Jair Bolsonaro supporters.
Musk has criticized these demands as censorship.
In recent months, X has faced legal challenges related to its content moderation practices in Brazil.
Earlier this year, Judge Moraes ordered X to block certain accounts involved in digital militias and misinformation campaigns linked to Bolsonaro’s administration.
Musk’s resistance led Moraes to inquire into X’s compliance, culminating in the current legal and financial sanctions.
As the conflict escalates, X’s presence in Brazil—one of its largest markets—is under threat.
Musk’s earlier decision to halt operations and lay off staff in Latin America’s largest economy while keeping the platform available to Brazilian users highlighted his objections to the court’s orders.
X had claimed that Moraes secretly threatened arrest to enforce compliance.
In response to the unfolding drama, many Brazilians have taken to X to share memes and commentary on the legal battle, reflecting the polarized views on the issue.
Some users argue that Moraes’ rulings undermine freedom of speech, while others support the court’s efforts to enforce local laws.
Brazilian President Luiz Inácio Lula da Silva has weighed in by listing other social media accounts in a post, indirectly addressing the broader context of digital regulation.
The potential shutdown of X in Brazil would be a significant blow to the platform’s operations in a critical market amid ongoing content regulation and legal compliance challenges.
