Brazil’s President has called on his country to set an example in the global fight against “Elon Musk’s far-right ideology.” This statement follows the Supreme Court’s decision to ban the social media platform X for spreading hate speech and misinformation. Supreme Court Justice Alexandre de Moraes ordered the ban, accusing X of failing to block accounts that spread harmful content and not complying with other legal requirements.
Free Speech Concerns and Investor Reactions
The decision to block X has drawn criticism from free speech advocates and some investors who are concerned about the potential impact on business. Billionaire hedge fund manager Bill Ackman expressed worries that shutting down the platform could “put Brazil on a fast track to becoming an unattractive investment market.” A major concern among investors is the freezing of accounts belonging to Musk’s satellite internet company, Starlink, used as collateral for X’s payment of fines. Arthur Lira, President of Brazil’s lower house of parliament, argued that the court should not have taken action against Starlink simply because it shares ownership with X, as this creates legal uncertainty.
The Ongoing Dispute and Broader Implications
Starlink’s refusal to comply with orders from Brazil’s telecom regulator Anatel to block access to X has added to the tension. The company stated it would comply only after its accounts are unfrozen. Eric Farnsworth, a former U.S. diplomat and analyst at the Council of the Americas, commented that this dispute could harm Brazil’s image by reinforcing a narrative of uncertainty and growing government skepticism toward the private sector.
The X ban is the culmination of a prolonged standoff between Musk and the Brazilian government, which began in April when de Moraes demanded the removal of several accounts on X that were allegedly spreading misinformation, reminds NIX Solutions. Musk’s initial response was to ignore the demand and close X’s offices in Brazil, leading to the full ban after he failed to respond to a court ultimatum. Legal experts suggest that both sides contributed to the escalation, with the court possibly overstepping its bounds and Musk ignoring fundamental legal obligations. Carl Tobias, a law professor at the University of Richmond, stated that the Supreme Court’s actions were justified, noting that “everyone has to follow the law, including Musk.”
To recap, the investigation into Musk is part of a broader probe launched three years ago into so-called digital militias—criminal organizations allegedly using social media to organize anti-democratic actions, including the attempted storming of Brazil’s Congress, presidential palace, and Supreme Court in January 2023. As this situation develops, we’ll keep you updated.