Brazil’s Supreme Court Targets X and Starlink Over Unpaid Fines

Brazil’s Supreme Court Takes Action Against X and Starlink

In a significant legal development, Brazil’s Supreme Court found itself grappling with a thorny issue: the social media platform X, owned by billionaire Elon Musk, was neglecting to pay imposed fines and had already faced a nationwide ban. In an unusual turn of events, the court decided to target another of Musk’s ventures to resolve the matter.

On Friday, the Supreme Court announced that two Brazilian banks had complied with its directives to deduct a total of $3.3 million in fines from the Brazilian accounts of both X and Starlink, another company under Musk’s control. Justice Alexandre de Moraes, who had levied these fines, took decisive action last month by blocking X throughout Brazil after Musk ignored orders to suspend certain accounts that were deemed problematic. Furthermore, Musk’s strategic closure of the company’s Brazilian office was seen as an attempt to evade repercussions.

In a bid to recover the fines imposed on X, Justice Moraes initiated a freeze on the local assets of Starlink, the popular satellite internet service that has gained traction in Brazil. The court confirmed on Friday that the banks had successfully transferred $1.3 million from X’s accounts and $2 million from Starlink’s to the Brazilian government. Subsequently, the court lifted the freeze on the companies’ assets in Brazil.

This development marked a notable conclusion to one of the more peculiar facets of the ongoing dispute between Justice Moraes and Musk. The two have clashed over content regulation on X, with the justice arguing that certain accounts were engaging in unlawful attacks against Brazilian institutions, while Musk contended that the judge was overstepping by censoring dissenting voices. Despite the financial resolution, X remains inaccessible in Brazil.

Justice Moraes justified the decision to hold Starlink accountable for the fines levied against X, citing their status as part of the same “de facto economic group.” However, this interpretation raised eyebrows among some legal experts in Brazil, who questioned its validity. Nevertheless, the court asserted that both companies had missed the window to appeal the decision.

Starlink had previously sought relief from the court to unfreeze its assets, but another justice swiftly dismissed this request. Musk publicly condemned the asset freeze, labeling it “absolutely illegal” and highlighting the fact that Starlink is owned by SpaceX, a private aerospace firm. He noted that he possesses a 40 percent stake in SpaceX and controls a majority of its voting shares.

It is noteworthy that Starlink had initially supported X during this tumultuous period. Following the court’s order to block the social media platform, Starlink informed regulators that it would not comply, allowing its 250,000 Brazilian users to continue accessing X. However, faced with the looming threat of losing its operational license in Brazil, Starlink ultimately capitulated and agreed to block the site.