The social media platform X faces the prospect of a ban in Brazil after failing to meet a court-imposed 24-hour deadline to appoint a legal representative in the country.
The deadline expired at 8.07pm local time on Thursday (0.07am BST on Friday). An hour later, Elon Musk’s social network announced it would not comply.
The dispute began in April when the supreme court judge Alexandre de Moraes ordered the suspension of dozens of accounts for allegedly spreading disinformation – a request Musk has denounced as censorship.
President Luiz Inácio Lula da Silva said in a radio interview on Friday morning: “Just because the guy [Musk] has a lot of money doesn’t mean they can disrespect you … Who does he think he is?”
X, formerly known as Twitter, has been without a legal representative in Brazil since 17 August, when Musk announced that his company was shutting down its operations in the country “effective immediately” due to what it called “censorship orders” from Moraes. The service has remained available to users in the country.
Moraes’ April order to X to block some accounts stemmed from an investigation into “digital militias” who backed former president Jair Bolsonaro’s attempts to stay in power after his 2022 election defeat. After Musk refused to comply, the judge included him in his investigation.
On Wednesday, Moraes gave the company 24 hours to appoint a new legal representative in Brazil – a requirement for foreign companies operating in the country – “under penalty of immediate suspension of the social network’s activities”.
In the post announcing its non-compliance with the order, X said it “would not comply with his [Moraes’] illegal orders to censor his political opponents”.
Asked on Friday about Musk’s refusal to comply, Lula said: “Any and all citizens from anywhere in the world who have investments in Brazil are subject to the Brazilian constitution and Brazilian laws.”
The president said Musk “must respect the decision of the Brazilian supreme court … If not, this country will never be sovereign”.
It is not clear whether or when the social network will be suspended.
Moraes may either make a solo decision or bring it before the supreme court’s full bench, which, according to ministers who have reportedly spoken privately to the Brazilian press, is inclined to support their colleague.
Even if a suspension order is issued, the social network will probably not shut down immediately.
There are several bureaucratic steps to follow: first, the court gives the order to the National Telecommunications Agency, which must pass it on to the more than 20,000 broadband internet providers in the country, each of which must block X.
A simple use of a VPN, according to experts, would be sufficient to circumvent the suspension.
It was also revealed on Thursday that on 18 August – a day after Musk announced the end of X’s operations in Brazil – Moraes blocked the local bank accounts for Musk’s satellite and internet provider Starlink. The aim was to enforce fines imposed on X for refusing to remove profiles accused of promoting anti-democratic acts and false news.
The two firms are part of Musk’s sprawling business empire, which includes the rocket company SpaceX and the electric car company Tesla. The billionaire owns X and 40% of SpaceX, and is the chief executive of Tesla.
Legal experts have criticised the Starlink decision. They argue that it is a different company (albeit owned by the same person) and should not be held responsible for matters pertaining to X.
In an email to its clients, Starlink criticised the decision and stated: “Although this illegal request may affect our ability to receive your monthly payment … we will continue to provide services to you free of charge, if necessary.”
Starlink, which is the dominant internet provider in the Amazon, remains operational for now.
