Brazilian Supreme Court Justice Alexandre de Moraes seized over $3.3 million from Elon Musk’s X and Starlink accounts to pay fines owed by X. The decision was made to collect funds equivalent to fines owed by X, a separate entity from Starlink. The frozen accounts were unfrozen after the fines were paid. Legal analysts questioned the decision to charge Starlink for X’s fines, with many believing it to be unjust.
Moraes had previously suspended X in Brazil for not having a legal representative in the country and has clashed with Musk over content moderation issues. This led to a ban on X in the country and a fine for using VPNs to access the platform. Supporters of former president Jair Bolsonaro see the ban as political persecution.
Since January 2022, Starlink has captured a 0.5% share of the Internet market in Brazil, according to Anatel. X had 22 million users in Brazil, significantly fewer than Instagram or Facebook. Critics believe Moraes’ decision to seize funds from Starlink for fines owed by X is unfair, as the two companies are separate entities.
While some legal analysts support Moraes’ decision, others believe it to be unjust. Luís Henrique Machado, a law professor, believes the ruling is legitimate, as X was sanctioned for not removing content as ordered by the Supreme Court. The ongoing dispute between Musk, X, and the Brazilian authorities highlights the challenges faced by tech companies operating in countries with strict regulations regarding content moderation and legal representation.
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