Brazil's Supreme Court Unfreezes X and Starlink Accounts After $3 Million Payment
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Brazil SC unfreezes accounts of Elon Musk's X, Starlink after fine - Times of India
Brazil's Supreme Court has unfrozen the accounts of SpaceX and X - owned by Elon Musk - after it ordered the transfer of 18.35 million reais ($3.3 million) from the accounts to the national coffers. The court said that freezing of accounts was no longer necessary after the fine has been paid, news agency Reuters reported. "The funds were blocked by decision of [Justice Alexandre de Moraes] for full compliance with the fines imposed due to the non-compliance of court decisions by social network X," the order said.(Translated from Portuguese to English) "The company was fined for not removing content after an order from the STF in ongoing investigations, in addition to having removed its legal representatives from Brazil, which led to the suspension of the platform's operation," it added. Why Brazil Supreme Court fined X The SC previously ruled that X had repeatedly violated Brazilian law by refusing to appoint a legal representative. The company also refused to remove content or profiles from its platform that the court determined to be harmful towards democratic institutions in Brazil. The suspended accounts on X allegedly included users who had threatened federal police officers investigating former President Jair Bolsonaro, who is accused of inciting the January 8th riots and attempting a coup. Musk has publicly supported Bolsonaro, partly due to the former president's authorisation for Starlink to operate in Brazil. Following the ruling, the SC suspended the platform and despite fines, X remains suspended in Brazil. Musk and his companies have criticised the ban as "illegal" and said that it was issued without due process. The tech executive has also engaged in a war of words with de Moraes, calling for his impeachment. SpaceX COO Gwynne Shotwell has also publicly criticised the Brazilian Supreme Court's actions. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.
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Brazil's court unfreezes accounts of X, Starlink following $3 mn transfer
After directing the transfer of more than $ 3 million in outstanding fines, Justice Alexandre de Moraes of the Brazilian Supreme Court has unfrozen the bank accounts of the satellite internet company Starlink and the social media platform X, reported Al Jazeera. The Brazilian government collected 7.2 million Brazilian reais ($1.3m) from an X bank account and over 11 million Brazilian reais ($1.9m) from a Starlink account to pay the penalty, according to a statement released by the highest court of the nation on Friday. Click here to connect with us on WhatsApp "After the payment of the full amount that was owed, Justice [de Moraes] considered there was no need to keep the bank accounts frozen and ordered the immediate unfreezing of bank accounts/financial assets," the statement said. Previously, De Moraes took the contentious decision to outlaw X in Brazil when Elon Musk, the company's billionaire owner, disobeyed court orders to take down accounts that were allegedly disseminating false information. In addition, the social media network missed a legally mandated deadline to designate a legal representation in Brazil, reported Al Jazeera. Musk is the owner of both Starlink and X, and Starlink personnel allegedly stated their internet service will not abide by the limitation at first following the court's order on X. More From This Section G20 nations agree to fight disinformation and set up AI guidelines US sanctions Russian state media for raising funds for troops in Ukraine EU antitrust order to Google's adtech business unlikely for now: Report Pope slams both US presidential candidates over 'anti-life policies' China hits PwC with six month ban in record penalty over Evergrande audit Musk referred to de Moraes as an "evil dictator" after the court decided to shut X. Musk also sympathised to those who supported Jair Bolsonaro, the erstwhile right-wing leader of Brazil, who disseminated unverified information on the October 2022 election, which he lost, Al Jazeera reported. Bolsonaro's followers eventually invaded the nation's legislature on January 8, 2023, calling for a military coup to overturn his defeat. Since then, Bolsonaro has been unable to hold public office until 2030, and similar to Musk, he and Justice de Moraes have clashed over investigations into his behaviour. Also Read India, Brazil discuss mutual interests, ways to enhance defence cooperation Amid drought in Brazil, wildfires rage, Amazon level falls to record low What will be India's position at G20 on proposal of 'billionaire tax': Cong Brazil's X ban drives Bolsonaro supporters to rally for 'free speech' Elon Musk dares the world to take on X as he scoffs at Brazil's ban
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Brazil's Supreme Court Lifts Freeze On Starlink And X's Finances After Elon Musk's Companies Cough Up $3.3 Million In Fines
Brazil's Supreme Court Justice Alexandre de Moraes has lifted the freezes on Starlink and X bank accounts after ordering the transfer of 18.35 million reais ($3.3 million) to the national treasury. What Happened: The court stated that the amount transferred equaled what X owed in fines, imposed due to a conflict between billionaire owner Elon Musk and Moraes, reported Reuters. The judge had previously blocked access to the X platform in Brazil, its sixth-largest market, after the company failed to comply with orders to block accounts accused of spreading "fake news" and hate messages. Musk has contested these orders, labeling them as "censorship." Additionally, X did not appoint a local legal representative as mandated by Brazilian law, leading Moraes to freeze Starlink's accounts to cover potential fines owed by X. See Also: Mark Zuckerberg Says He Is Done Apologizing, Reveals One Of The Biggest Mistakes Of His Career Despite lifting the freezes, Moraes has not revoked the decision to block access to X in Brazil, citing unresolved issues around legal representation and content removal. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: The conflict between Musk and Brazil's judiciary has been escalating for weeks. On Aug. 29, the Supreme Court of Brazil imposed a financial freeze on Starlink, a subsidiary of SpaceX, due to X's lack of legal representatives in Brazil and unpaid fines related to failing to provide certain documents. On Sept. 3, Starlink initially defied a court order to block access to X in Brazil, citing the freezing of its local accounts as a reason. However, later that day, Starlink complied with the court order, despite calling the asset freeze "illegal." Adding to the complexity, FCC Commissioner Brendan Carr wrote to Brazil's telecom regulator, Anatel, criticizing the punitive actions against X and Starlink and warning that such measures could make Brazil an "uninvestable market." Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Elon Musk Has Secret Service-Like Security Team That Calls Him 'Voyager' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photos courtesy: Shutterstock and Wikimedia Market News and Data brought to you by Benzinga APIs
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Brazil's Supreme Court has lifted the freeze on the accounts of Elon Musk's companies X and Starlink after they paid a $3 million fine. The fine was imposed for non-compliance with court orders to block certain social media accounts.
Brazil's Supreme Court Lifts Financial Restrictions on X and Starlink
In a significant development, Brazil's Supreme Court has unfrozen the accounts of Elon Musk's companies X (formerly Twitter) and Starlink following the transfer of a substantial fine. The decision comes after a period of tension between the tech mogul and Brazilian authorities over content moderation issues
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.Background of the Dispute
The conflict arose when Musk's social media platform X failed to comply with court orders to block certain social media accounts. These accounts were allegedly involved in spreading disinformation and violating Brazilian laws. The Supreme Court, led by Justice Alexandre de Moraes, had imposed restrictions on X's operations in the country as a result of this non-compliance
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.Financial Penalties and Resolution
As a consequence of the standoff, the court had frozen the accounts of both X and Starlink, Musk's satellite internet company. The freeze was lifted after the companies transferred approximately $3 million (16 million reais) to the court's designated account. This amount represents the daily fines accumulated due to non-compliance with the court's orders
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.Musk's Response and Public Reaction
Elon Musk had publicly criticized the court's actions, particularly targeting Justice de Moraes. He accused the justice of censorship and even suggested closing X's offices in Brazil. This confrontational stance garnered significant attention both within Brazil and internationally, raising questions about the balance between free speech and content moderation
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.Related Stories
Implications for Tech Companies in Brazil
This incident highlights the challenges faced by global tech companies operating in Brazil, particularly concerning content moderation and compliance with local laws. It underscores the need for these companies to navigate carefully between their global policies and the specific legal requirements of the countries in which they operate
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.Future Outlook
While the immediate financial restrictions have been lifted, the broader issues of content moderation and the role of social media platforms in disseminating information remain contentious. The resolution of this specific incident may set a precedent for how similar disputes are handled in the future, both in Brazil and potentially in other jurisdictions grappling with similar challenges
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