“Musk’s X Faces Potential Brazil Ban”

Recently, X – belonging to billionaire Elon Musk – indicated its anticipation of being prohibited from operating in Brazil. This comes as a significant peak in existing disputes between Musk and a senior jurist in Brazil, the biggest economy in Latin America. X failed to respect a 24-hour timeline to appoint a legal representative in Brazil, leading to this situation.

As per a Thursday communication on X, the social media platform envisages soon being off-limits to Brazilian users, as a consequence of its non-compliance with what it deems as unlawful commands to silence political rivals.

On the preceding Wednesday, an order from Justice Alexandre de Moraes of the Supreme Court in Brazil was circulated. This demanded X to designate a in-country legal representative, otherwise face shutdown.

Recently, X shuttered its Brazil office, voicing that it had been handed an undisclosed order by Mr de Moraes commanding either the cessation of some accounts or subjecting its local legal representative to arrest or a financial penalty. It revealed that subsequent to its legal representative stepping down, Mr de Moraes put a halt to her financial transactions.

X expressed in a statement, “Our protests against his obviously illicit activities were either sidelined or overlooked”. It added that all illegal requests from Judge de Moraes and pertinent legal submissions would be made publicly accessible over the coming days for clarity.

Mr Musk, who vocally champions free speech, has on numerous occasions come into conflict with Mr de Moraes over his requests to block or suspend certain accounts. The judge believes that these actions are central to his efforts to shield democracy from disinformation and harmful content, often disseminated by extreme right-wing sections.

Last Wednesday, Musk publicly displayed a computer-generated image of de Moraes imprisoned, with a message attached: “One of these days, @Alexandre, this image of you incarcerated will become a reality. You can count on that.”

In a recent comment made last Thursday, Mr de Moraes was described by Mr Musk as a ‘lawbreaker clad in the costume of a judge comparable to a Halloween outfit’. The Tesla and SpaceX executive has in the past demanded that Mr de Moraes “step down or face impeachment”, leading to widespread scorn from a considerable portion of Brazil’s government.

President Luiz Inácio Lula da Silva has consistently portrayed Mr Musk as a detached tycoon. “There is clearly an alignment with the far-right globally. [Mr Musk] could be part of this,” observed Luís Roberto Barroso, the current head of the Supreme Court, in an interview with the Financial Times in May. “Some individuals claim to champion freedom of speech when in reality they are advocating for a business model that thrives on engagement, and sadly, on misinformation, hate, sensation and conspiracy theories as well.”

Also, last Thursday, Mr Musk’s satellite enterprise, Starlink, revealed that it had been issued an order by Mr de Moraes earlier in the week to freeze its finances and prevent it from carrying out financial transactions in Brazil.

Local media outlets have speculated that the decision to freeze Starlink’s Brazilian accounts could be part of an effort to gather fines imposed on X for disregarding court mandates.

Mr Musk’s frequent clashes with governments are becoming increasingly commonplace as he ventures into the realm of international politics via the platform he acquired for $44 billion, supporting right-wing politicians around the globe while criticising those on the left.

Just recently, he publicly condemned UK Prime Minister Sir Keir Starmer for his management of anti-immigration unrest, and he sparred verbally with Venezuelan President Nicolás Maduro, leading to a 10-day block of the platform in Venezuela by the country’s authoritarian socialist. He also hosted an interview with former US President and current Republican contender Donald Trump on his platform.

This action is likely to negatively impact X which is already grappling to stay financially afloat, as advertisers are increasingly leaving the platform due to Mr Musk’s lax attitude towards moderation as well as his sporadic and unpredictable posts.

The prohibition also follows an incident where Pavel Durov, the Russia-born CEO of Telegram who like Musk favours a relaxed approach to moderation, was arrested and preliminarily charged in France for allegedly facilitating illegal activity on his app.

These actions have triggered an international discussion on whether social media platforms should favour freedom of speech over user safety.

Mr De Moraes has led an aggressive judicial effort to tackle online misinformation, however, his approach has sparked debate in Brazil. His advocates believe that his actions played a vital role in upholding democracy amidst accusations from ex-President Jair Bolsonaro of untrustworthy electronic voting in the 2022 elections. Nonetheless, staunch supporters of Bolsonaro, from the conservative faction, charge Mr De Moraes with curbing free speech, and unfairly targeting right-leaning individuals. – The Financial Times retains copyright.

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