The Brazilian Supreme Court has confiscated $3 million from Elon Musk’s company, Starlink, following a judge’s edict for the “immediate suspension” of the X social media app in Brazil. This punitive measure is in response to the app’s failure to settle fines tied to its neglect of Brazil’s censorship demands, including the lack of a designated legal representation within the nation as mandated by Justice Alexandre de Moraes.
Moraes is punishing Starlink for the actions of X, a totally separate company.
The conflict between Moraes and Musk has escalated after the uppermost court in Brazil insisted on the disabling of certain X accounts, a demand largely viewed to target supporters of former President Jair Bolsonaro. In defiance of this, the offices of X were shuttered in Brazil instead of complying with the court’s directives. This led Moraes to impose the full and complete halt of X’s operations in the country until the company adheres to the court’s commands.
The directives comprise a fine of 18.5 million reais ($3.2 million) and the appointment of a duly authorized legal representative within Brazil’s territory. Following Moraes’ instructions, telecom regulator Anatel was tasked to enforce the suspension and to report its compliance within a day’s notice. To “ensure the settlement of fines,” Moraes authorized the impounding of Starlink’s local funds.
Starlink expressed its disapproval in a statement at the time on X, “Earlier this week we received an order from Brazil’s Supreme Court Justice @alexandre de Moraes that freezes Starlink’s finances and prevents Starlink from conducting financial transactions in that country,” the statement read. The company also criticized Moraes for determining, without substantial basis, that Starlink should bear responsibility for the penalties imposed on X, in a process the company refers to as lacking transparency and devoid of due process.
Exciting developments: Moraes and Musk continue their battle, as the highest court in Brazil demands the deactivation of particular X accounts. Moraes has rationalized that Starlink could carry the liability for X’s fines due to their affiliation under the same “de facto economic group.” The justice has since lifted the freezing of bank accounts, following the full remittance of the monies owed.
Recent statements from the court reveal that more than 7.2 million Brazilian reais ($1.29 million) were transferred from an X bank account, and close to 11 million Brazilian reais ($1,95 million) were seized from Starlink. These accounts were released after the payments needed had been made. Brazil’s highest court conveyed that the telecoms companies’ assets are now at their disposal.
