Brazilian Supreme Court Unblocks Assets of Elon Musk’s Starlink, X After Penalties

Why Trust Techopedia
Key Takeaways

  • Brazil's supreme court ordered over $3M in fines to be transferred from X and Starlink accounts.
  • After the transfer, the court unfroze the bank accounts and assets of X and Starlink.
  • Despite the unfreezing, the suspension of X's operations in Brazil remains in effect since August.

Brazilian Supreme Court Justice Alexandre de Moraes has lifted the freeze on the bank accounts of social media platform X and satellite internet provider Starlink.

This decision follows the payment of over $3 million in fines owed by the companies. The unfreezing marks the resolution of a financial dispute between the firms and the Brazilian government.

X Remains Suspended in Brazil Despite Payment of Imposed Fines

On September 13, Brazil’s Supreme Court announced it had retrieved 7.2 million Brazilian reais ($1.3 million) from X and 11 million reais ($1.9 million) from Starlink to settle fines imposed on the companies.

The court, led by Justice Alexandre de Moraes, had previously frozen the accounts after X’s owner, Elon Musk, refused to comply with court orders to remove misinformation-spreading accounts from the platform. Additionally, X failed to appoint a legal representative in Brazil, violating local law.

This led Justice Moraes to order the “immediate, complete, and total suspension of X’s operations” in the country, cutting off access for around 40 million Brazilian users. Those caught using the platform via encrypted connections were threatened with fines of up to 50,000 reais ($9,000) per day.

Musk, known for his outspoken views, reacted to the court’s actions by calling de Moraes “an evil dictator” for shutting down what he described as “the #1 source of truth in Brazil.”

After the fines were paid in full, de Moraes ruled there was no longer a need to freeze the companies’ financial assets, ordering the immediate unfreezing of their bank accounts. The sanctions were part of the Brazilian government’s ongoing efforts to enforce its regulations on tech companies.

The situation remains tense. Musk’s companies are now free from financial freezes, but the ban on X’s operations in Brazil is still firmly in place.

Is Elon Musk’s View of “Freedom of Speech” Unblemished?

Elon Musk has made headlines for his outspoken criticism of liberal governments that impose restrictions on spreading misinformation on X. Yet, Musk’s stance on this issue appears less consistent when examined in his interactions with right-wing governments.

In 2023, Musk’s leadership of X led to a notable contradiction in his approach to free speech. The platform complied with a request from India’s Hindu nationalist Prime Minister Narendra Modi to block access to a BBC documentary that probed Modi’s role in a 2002 anti-Muslim pogrom.

Musk defended the decision by explaining that the stringent regulations in India required X to adhere to local laws, even if it meant restricting access to the documentary. Thus, the compliance.

This selective application of freedom of speech raises important questions about Musk’s principles. He vocally defends unrestricted speech in some contexts and expresses readiness to adhere to strict censorship laws in countries like India.