Brazil's Supreme Court Suspends Elon Musk's X Over Content Moderation Defiance and VPN Access

On Friday, Brazil's supreme court issued a nationwide suspension of Elon Musk's social network X, formerly known as Twitter. This decision comes after the company openly defied previous court orders regarding content moderation and the appointment of a legal representative in the country.

Suspension and Penalties Imposed

The order was made by Alexandre de Moraes, the court's top judge, who also mandated daily fines for individuals or businesses in Brazil found to be using virtual private networks (VPNs) or any other means to access X while the site remains banned in the country. The court issued an official statement through Brazil's government website on Friday, declaring, “the immediate and complete suspension of the operation of X throughout the national territory until the Court’s judicial decisions are complied with and the fines applied are paid.” Additionally, the order will remain in effect “until a representative of the company in the country is appointed.”

Failure to Comply

The supreme court of Brazil had given Musk and X just 24 hours to appoint a legal representative for its business in Brazil or face a penalty of suspension of activities in the country. The deadline passed unnoticed, and the global government affairs unit of X stated that the company “would not comply” with the court's orders, leading to the impending suspension.

Impact and Legal Implications

This decision raises significant legal implications for both Musk and his social media platform. Brazil, a prominent non-NATO ally of the U.S., is gearing up for its municipal elections in October. Under Brazilian laws, social media companies operating in the country are legally required to appoint individuals to handle government takedown notices, which includes addressing issues like political misinformation and incitement to violence. X does not have a legal representative in Brazil, and the company had previously indicated its intention to withdraw all its employees from the country to avoid potential arrests due to non-compliance with court orders.

Business Consequences

The suspension of X in Brazil poses potential business challenges for Musk's already beleaguered company. With Brazil being home to over 171 million active social media users, according to market research by Oosga, the suspension could have significant ramifications for X's business in the country. Despite this, Musk's $44 billion acquisition of Twitter in late 2022 has not been without its controversies. The implementation of sweeping changes and the reinstatement of previously banned and suspended accounts led to a mass exodus of major advertisers, with some, including the World Bank, ceasing their campaigns on X altogether due to issues with content appearing alongside racist posts.

Escalating Tensions

The escalating tensions between Musk and de Moraes are evident, with Musk drawing comparisons between the judge and the fictional character Voldemort from the Harry Potter series. Musk's repeated criticisms of de Moraes' court orders as censorship have further fueled the conflict, with X accusing the court of taking “illegal actions” against the company.

Continued Communication and Compliance

The U.S. embassy in Brazil and representatives for X were unavailable for comment following the suspension, highlighting the complexity of the situation. However, in the aftermath of the suspension, Musk publicly criticized the Brazilian government, suggesting that their actions stem from a fear of the truth being revealed to the public.

Next Steps and Implications

As a consequence of the supreme court's orders, the top court has instructed Brazil's telecommunications agency, Anatel, to implement measures to block the use of X throughout the country. The outcome of this suspension and the subsequent responses from X will likely have far-reaching implications for the social media platform's operations in Brazil and its overall standing in the international legal landscape.