Brazil may soon shut down X after deadline expires, freezes Starlink's finances; Musk hits out

Brazil has appeared set to suspend the services of the social media platform X, formerly Twitter, after the company did not name its legal representative for the South American country by 8:07 p.m. local time (2307 GMT) as ordered by the Brazilian Supreme Court.

Brazilian law requires all internet companies to have a legal representative in the country.

This ensures someone can be notified of legal decisions and is qualified to take any requisite action.

But earlier this month, X removed its legal representative from Brazil on the grounds that Brazilian Supreme Court justice Alexandre de Moraes had threatened her with arrest. 

The judge had given X time until Thursday evening to appoint a new representative, or face a shutdown until his order is met.

What's the issue between Brazil and X?

The social media site's billionaire owner Elon Musk responded to the judge's order with insults, including calling de Moraes a "tyrant" and "a dictator."

In a post on X, Musk complained that Moraes "is an outright criminal of the worst kind, masquerading as a judge."

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.

Musk challenged that decision and said he would reactivate accounts on X, accusing Moraes of stifling free speech.

The announcement prompted Moraes to open an inquiry into the billionaire in early April over the dissemination of fake news. Moraes also launched a separate investigation into the billionaire for alleged obstruction.

Brazil freezes Starlink's finances

On Thursday, Starlink, Musk's satellite internet operator, said it had received an order from Moraes that "freezes Starlink's finances and prevents Starlink from conducting financial transactions" in Brazil.

The company alleged that the order "is based on an unfounded determination that Starlink should be responsible for the fines levied — unconstitutionally — against X."

Starlink said it intended "to address the matter legally."

Meanwhile, after the deadline for the naming of a legal representative expired, X released a statement saying it expects its service to be shutdown in Brazil.

"Unlike other social media and technology platforms, we will not comply in secret with illegal orders," it said. "To our users in Brazil and around the world, X remains committed to protecting your freedom of speech."

X, formerly known as Twitter, is widely used in Brazil. The platform is an important means of communication for politicians in particular.