Brazil's Supreme Court freezes Elon Musk's Starlink accounts amid threat of X ban

Starlink accounts frozen: Brazil’s Supreme Court has taken drastic measures by blocking the bank accounts of Elon Musk’s Starlink internet service. This is part of a broader conflict that could result in the suspension of Musk’s social media platform, X, in Brazil.

Starlink, the satellite internet service operated by SpaceX, Musk’s rocket technology company, is facing financial restrictions due to issues related to the lack of a legal representative in Brazil for X. The court’s decision is a response to this legal oversight, as well as a separate dispute involving unpaid fines from X.

Court blocks Starlink funds

Supreme Court Judge Alexandre de Moraes signed the order that halts Starlink’s financial transactions in Brazil. According to a court source, this action is linked to X's failure to appoint a legal representative in the country. Local reports indicate that X owes at least 20 million reais ($3.6 million) in fines, although this figure has not been independently confirmed by Reuters.

Musk has been given until 8:07 pm (2307 GMT) on Thursday to comply with the court’s order to name a legal representative or face a potential ban of X in Brazil. The Supreme Court also plans to review whether X has made any legal responses to the decision.

The controversy centres around Moraes' directive to block certain accounts on X that are alleged to spread false information. These accounts are linked to supporters of former President Jair Bolsonaro, some of whom deny his 2022 election loss. Musk has criticised Moraes’ actions as censorship and has denounced him as a "criminal" in a post on X.

In response, Starlink has accused the judge of issuing the order without proper legal procedure. The dispute could lead to X losing a major market at a time when it is already struggling with declining ad revenue. Earlier this month, X announced it would cease operations and lay off staff in Brazil due to what it described as "censorship orders" from Moraes, while keeping the platform accessible to Brazilian users.

Local laws enforced

Moraes has stressed that companies failing to adhere to local laws and protect private information could face temporary suspension. He had previously ordered X to block certain accounts as part of investigations into digital militias accused of spreading misinformation and hate during Bolsonaro's presidency.

Despite initially challenging Moraes' orders, X eventually indicated it would comply with the rulings. However, it faced criticism for not fully implementing the decisions, citing "operational faults" that allowed blocked users to remain active.

The situation has sparked a range of reactions on X, with some users mocking the ongoing legal battle through memes, while others debate whether Moraes is infringing on free speech or if Musk should abide by Brazilian laws.

X, formerly known as Twitter, is a vital communication tool in Brazil, especially for politicians who use it for announcements and attacks.

(With Reuters Inputs)