Elon Musk’s X Prepares for Shutdown in Brazil as Conflict with Judge Escalates

By Ricardo Brito, Luana Maria Benedito, and Andre Romani

BRASILIA/SAO PAULO – Social media platform X has expressed concerns that Brazil’s Supreme Court may soon order its shutdown amidst an ongoing legal dispute regarding compliance with local regulations. Owner Elon Musk claims the platform faces repercussions for resisting censorship.

X stated that it anticipates an order from Supreme Court Judge Alexandre de Moraes directing the company to cease operations imminently, following a deadline that passed for identifying a legal representative in Brazil.

As of late Thursday night, X continued to operate without interruption in the country. Earlier that same day, the Supreme Court took action to block the bank accounts of Musk’s Starlink satellite internet company, heightening tensions as X approached the possibility of shutting down in one of its key markets.

Both X and Starlink are part of Musk’s broad range of businesses, which also includes SpaceX and Tesla. Musk himself owns X and holds a significant stake in SpaceX, along with his role as CEO of Tesla.

In a series of posts on X, Musk criticized de Moraes, labeling him an "evil dictator." He condemned the court’s decision to block Starlink, asserting it unfairly penalizes shareholders and ordinary Brazilians alike while announcing that SpaceX would offer free internet service to Brazilian users until the issue is resolved.

The court’s sanctions against Starlink stemmed from the absence of legal representation for X in Brazil. Reports indicate the sanctions are also related to an outstanding fine imposed on X for failing to submit required documents. Unverified reports suggest these fines may amount to at least 20 million reais ($3.6 million).

Brazilian law mandates that internet platforms maintain a legal representative within the country, who can receive judicial orders and be accountable for the business’s actions. Central to the escalating conflict is whether de Moraes can compel X to block accounts accused of disseminating misinformation—a move Musk has denounced as censorship.

Many of the accounts under scrutiny are associated with supporters of former President Jair Bolsonaro, some of whom contest the results of the 2022 election.

Musk previously attacked the judge’s credibility in a post, claiming that he is "an outright criminal of the worst kind." Starlink also alleged that the judge issued the order without proper due process.

The combination of ongoing legal struggles and digital disputes could jeopardize X’s position in one of its largest and most significant markets, especially as Musk has faced challenges with advertising revenue for the platform. Earlier in the month, X announced plans to suspend operations and dismiss staff in Brazil, citing "censorship orders" from the judge while still providing access to Brazilian users.

Musk claimed that de Moraes had secretly threatened a legal representative with arrest should compliance with court orders not be met. In a counter-response, Brazilian President Luiz Inacio Lula da Silva highlighted six alternative social media accounts on the platform.

De Moraes has warned that companies failing to adhere to local legal standards, particularly regarding data privacy, could face temporary shutdowns. Earlier this year, de Moraes ordered X to block specific accounts linked to digital militias accused of spreading hate and misinformation during Bolsonaro’s presidency.

After Musk challenged this order, de Moraes initiated an inquiry into Musk’s businesses. Eventually, X representatives conceded compliance with the rulings, although they later indicated operational errors had allowed some accounts to remain active contrary to the judge’s orders.

As this high-stakes situation unfolds, many Brazilian users have taken to X to create humorous content around the conflict, with some ridiculing the judge and Musk while opinions diverge on issues of free speech and legal compliance.

X, previously known as Twitter, plays a crucial role in Brazilian communication, especially among politicians.