X, the social media platform owned by Elon Musk, is set to resume its operations in Brazil once it pays a US$1.9 million fine. The Brazilian Supreme Court ordered this payment after the platform failed to comply with previous court orders. Justice Alexandre de Moraes clarified that X's reinstatement depends on adhering to Brazilian laws and fully respecting court rulings. The fine, imposed on September 19, resulted from X briefly restoring services for some users in Brazil despite an existing ban.
The fine and its background
The Supreme Court fined X for ignoring a two-day ban placed on the platform in Brazil. This happened again on September 23, when the service was restored via Starlink, SpaceX's satellite internet provider, which Musk also owns. Moraes took action by freezing the bank accounts of both Starlink and X in Brazil, withdrawing 18.35 million Reais (about US$3.4 million) to cover earlier penalties.
The US$1.9 million fine (10 million Reais) is a final payment X must make to meet the court's demands. Moraes stated that X's ability to return depends on “full compliance with Brazilian legislation and the absolute observance of the court orders in respect of national sovereignty.”
Musk's resistance and consequences
Elon Musk previously resisted Moraes' court order, which called for removing and freezing several accounts accused of spreading disinformation. Musk argued that complying with the order would amount to censorship and chose to cease X's operations in Brazil rather than comply. In response, Moraes ordered Brazilian internet providers to block X, and anyone accessing the platform via a VPN could face a daily fine of 50,000 Reais (approximately US$8,900).
This led to a complicated legal standoff, with the court enforcing strict measures against X and SpaceX's Starlink. The Brazilian Supreme Court's action was meant to enforce compliance with the nation's rules on disinformation and protect democratic principles.
X complies with court orders
Recently, X's legal team made moves to resolve the dispute. The company submitted documents to the Brazilian court naming its legal representative, a requirement Moraes had set. Additionally, X removed the accounts the judge had flagged as threats to democracy.
This change in X's approach signals a willingness to comply with the court's directives. Earlier, it had struggled to provide the necessary documentation to lift the ban, but with the latest submission, the platform is on the verge of returning to Brazil. Moraes indicated that X could “immediately return to its activities” once the fine is paid, suggesting Brazilian users could regain access to the platform soon.
This resolution highlights how X has shifted its strategy from defiance to cooperation, marking a significant change in Musk's handling of international legal matters. With the fine in place and conditions met, X's return to the Brazilian market seems inevitable.
