How the Elon Musk X feud started in Brazil – and where it is now

Brazil’s judicial branch has clashed with tech companies like WhatsApp and Telegram in the past. However, disagreement over moderation on X has exploded, leading to threats of arrest of X employees and restrictions on other Musk-owned companies.

This week, Brazil’s Supreme Court threw down the latest gauntlet in its war on X: it fined the platform nearly $1 million for briefly resurfacing despite a ban it imposed last month.

The fine comes as Musk’s other companies have gradually agreed to comply with the ban.

Earlier this month, Musk’s satellite provider, Starlink, agreed to follow court orders to block access to X in Brazil, which has the platform’s fifth-largest user population.

Here’s a timeline of the international feud:

Brazilian officials crack down on social media censorship

De Moraes began tightening restrictions on free speech several years ago when he opened an investigation into “fake news” during the tenure of former president Jair Bolsonaro.

X initially agreed to remove more than 100 accounts flagged for hate speech, misinformation and attacks on democracy, while promising to “challenge the orders legally when possible.”

Musk has said he disagrees with de Moraes’ position, frequently publicizing his concerns about the leader, calling the justice a dictator and calling for him to “resign or be impeached.”

X ignores de Moraes’ orders

While X first agreed to comply with the orders, Musk announced in April that he was lifting the restrictions, saying in a post about X that “principles matter more than profit.”

De Moraes replied that Musk would be investigated for obstruction of justice after refusing to remove the accounts. He also said Musk would face a fine of around $20,000 each time an account is reactivated on X, according to a report by French publication AFP.

Judge de Moraes raises the stakes

Musk closed the X offices in Brazil on August 17 after de Moraes threatened to arrest an X legal representative, according to a statement from the X Global Affairs team.

X was then banned from Brazil on August 31 after failing to comply with orders to appoint a legal representative for X. De Moraes said the ban would remain in place until more than $3 million in fines were paid and was appointed a legal representative.

De Moraes threatened a daily fine of nearly $9,000 for anyone in the country who tried to access X with a VPN, which Musk had recommended to users.

Starlink’s bank accounts were also frozen in the country on Aug. 29 to help cover X’s fines because the companies were linked to Musk’s ownership, according to an Associated Press report.

The company provides satellite internet to more than 200,000 customers in Brazil.

“This order is based on an unfounded determination that Starlink should be liable for fines imposed — unconstitutionally — against X,” Starlink said in a post on X, adding that it plans to take legal action.

Musk noted in a post on X that SpaceX and X are separate companies with different shareholders, and the move “improperly punishes other shareholders and the people of Brazil.”

Starlink agrees to enforce the X ban

After initially refusing to block X, Starlink reversed course earlier this month and said it would comply with the order to block X from the country.

“Regardless of Starlink’s illegal treatment in freezing our assets, we are complying with the order to block access to X in Brazil,” Starlink said in a post on X.

But Starlink vowed to “pursue all legal avenues” to fight the order.

Starlink’s parent company, SpaceX, did not respond to a request for comment from BI.

Brazil Supreme Court fines X for resurgence amid ban

Brazil fined X after some of its users were able to access the site on Wednesday, September 18, despite a ban issued in August, according to the BBC.

The company said its brief restoration was unintentional. A few hours later, it was blocked again.

However, the court fined the platform nearly $1 million per day for violating the ban.