Brazil restricts Starlink bank accounts amid a government conflict with Elon Musk's X
By MYBRANDBOOK
Brazil's Supreme Court has blocked Starlink's bank accounts due to a disagreement with Elon Musk's X over unpaid fines. The court's decision is related to ongoing efforts to combat fake news and hate speech, with X facing penalties for neglecting to deliver documents. Brazil’s Supreme Court ordered the suspension of X. Musk criticised the action as illegitimate, claiming it unfairly targeted Starlink, which operates independently from X.
The two firms are part of Musk's sprawling business empire which also includes rocket company SpaceX and electric car giant Tesla. The billionaire owns X and 40% of SpaceX, and is the CEO of Tesla.
In a series of comments on X, Musk lashed out at Moraes, labeling the judge an "evil dictator" in a newly pinned post. He also decried the ruling to block Starlink as illegal, and claimed the action "improperly" punishes other shareholders as well as ordinary Brazilians.
Musk also announced that Starlink-parent SpaceX will provide free internet service to Brazilian users "until this matter is resolved."
The decision to freeze Starlink's bank accounts also stems from a separate dispute over unpaid fines that X was ordered to pay due to its failure to turn over some documents. Local newspaper Folha has reported the fines total at least 20 million reais ($3.6 million), but Reuters was not able to confirm the amount.
The Supreme Court had set a deadline for X to name its legal representative in Brazil. Brazilian law requires all internet companies to have a legal representative in the country who can receive judicial orders and otherwise be legally responsible for the business.
At issue in the intensifying dispute is whether Moraes can order X to block certain accounts accused of spreading lies and distortions, a request Musk has denounced as censorship.
Most of the accounts ordered blocked are run by backers of far-right former President Jair Bolsonaro, some of which deny he lost his 2022 reelection bid.
In a previous post, Musk complained that Moraes "is an outright criminal of the worst kind, masquerading as a judge."
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