The bank accounts of SpaceX's Starlink are blocked in Brazil amid a feud between a Supreme Court Justice and X CEO Elon Musk over blocking far-right accounts on the platform.
ADVERTISEMENTStarlink says their accounts are frozen in Brazil amid a deepening feud between Alexandre de Moraes, a Brazilian Supreme Court justice and tech billionaire Elon Musk over his social media platform X.
“This order is based on an unfounded determination that Starlink should be responsible for the fines levied—unconstitutionally—against X,” SpaceX-owned Starlink wrote in a statement on X.
“It was issued in secret and without affording Starlink any of the due process of law guaranteed by the Constitution of Brazil. We intend to address the matter legally".
In replies to people sharing reports of the freeze, Musk called de Moraes "an outright criminal of the worst kind, masquerading as a judge".
Earlier this week, de Moraes threatened to suspend the social media platform X nationwide if Musk doesn't comply with his orders.
Brazil is a key market for both X and Starlink. Around 40 million Brazilians, or one-fifth of the population, use access X at least once a month, according to market research group Emarketer and Starlink has a customer base of roughly 250,000 in the country.
What is the basis for de Moraes' threat?
Earlier this month, X removed its legal representative from Brazil on the grounds that de Moraes had threatened her with arrest.
In Brazil, foreign companies need legal representation to operate in the country, according to the Supreme Court's press office. So, de Moraes gave X 24 hours to appoint a new representative or face a shutdown.
X said on Thursday in a statement that it expects its service to soon be shut down in Brazil.
“Unlike other social media and technology platforms, we will not comply in secret with illegal orders,” it said. “To our users in Brazil and around the world, X remains committed to protecting your freedom of speech.”
Luca Belli, coordinator of the Technology and Society Center at the Getulio Vargas Foundation in Rio, said X’s refusal to appoint a legal representative would be particularly problematic ahead of Brazil’s October municipal elections, when a lot of misinformation is expected to spread.
If de Moraes goes through with his threats, this wouldn't be the first time a Brazilian justice shut down a social media company.
WhatsApp was shut down several times in the country between 2015 and 2016 because it refused to comply with police requests for data.
In 2022, de Moraes threatened Telegram with a nationwide shutdown, arguing it had repeatedly ignored Brazilian authorities' requests to block profiles and provide information.
Telegram was also asked to appoint a local representative, which they ultimately did and stayed online.
ADVERTISEMENTHow would a shutdown happen?
De Moraes would first notify the nation’s telecommunications regulator, Anatel, who would then instruct operators, including Musk's own Starlink internet service provider, to suspend users’ access to X.
That includes preventing the resolution of X’s website and blocking access to the IP address of X’s servers from inside Brazilian territory, according to Belli.
X could be offline as early as 12 hours after receiving instructions, Belli continued, because the process is not complicated.
Major app stores would likely be asked to stop offering X on mobile phones, according to Carlos Affonso Souza, Director of the Institute for Technology and Society in Rio de Janeiro.
ADVERTISEMENTX also accused de Moraes' colleagues on the Supreme Court in its Thursday statement of being “either unwilling or unable to stand up to him.”
De Moraes’ defenders have said his actions have been lawful, supported by most of the court’s full bench and have served to protect democracy at a time in which it is imperilled.
Affonso Souza added that an individual judge's ruling to shut down a platform with so many users would likely be assessed at a later date by the Supreme Court's full bench.
If the ban goes through, Brazil will join a short list of countries that have blocked X such as Russia, China, Iran, Myanmar, North Korea, Venezuela and Turkmenistan.
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