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Elon Musk’s X Set to Resume Operations in Brazil After Final Fine Payment

Elon Musk’s social media platform X is set to be restored in Brazil after it fulfills one last condition: the payment of an additional fine. Brazil’s top justice, Alexandre de Moraes, issued a ruling on Friday requiring the platform to pay 10 million reals (approximately $2 million) for two more days of non-compliance with previous court orders. Rachel de Oliveira, X’s legal representative in Brazil, is also liable for a separate fine of 300,000 reals.

The legal battle between X and the Brazilian government dates back to April, when de Moraes, a justice of the Supremo Tribunal Federal (STF), launched an investigation into Musk and X for allegedly obstructing justice. Musk had previously vowed to defy court orders to remove specific accounts, which he described as “censorship.” This defiance culminated in the platform being suspended at the end of August, a ruling upheld by a judicial panel on September 2.

Earlier this month, X informed Brazil’s supreme court that it was now compliant with its orders. Despite this, the additional fine was imposed for X’s delayed adherence. The ongoing conflict escalated after Musk criticized de Moraes publicly, calling him a “criminal” and urging the U.S. to cease foreign aid to Brazil.

In mid-August, Musk also closed X’s offices in Brazil, leaving the company without a legally required representative. Following this, the STF issued an ultimatum, threatening a nationwide ban on X and further fines if the platform did not comply with orders to remove certain accounts accused of harming federal agents.

The case became even more complex when the STF froze the business assets of Musk’s companies, including X and Starlink, as the court viewed them as interconnected entities. Musk responded by threatening reciprocal legal action against the Brazilian government unless his company’s assets were returned.

Justice de Moraes has been a strong advocate for federal regulation to combat hate speech and misinformation online, leading to pushback from tech companies and far-right officials, including former President Jair Bolsonaro and his supporters. Musk, who has criticized Brazil’s current President Luiz Inacio Lula da Silva, has maintained a long-standing relationship with Bolsonaro, who previously authorized SpaceX to operate in Brazil.

Though Musk portrays himself as a defender of free speech, his leadership at X has drawn criticism. Under his management, X has complied with government takedown requests in countries like Turkey and India, with compliance rates increasing significantly in 2023 compared to the previous year.

X now faces increased competition in Brazil, with Meta’s Threads and Bluesky gaining users during its suspension. Starlink, Musk’s satellite internet business, also faces competition from French-American firm eSpace, which was recently authorized to provide services in Brazil.

Lukas Darien, a law professor at Facex University Center in Brazil, commented on the implications of the case, noting that it sets a precedent for large technology companies. “This case demonstrates that laws will be enforced in Brazil, regardless of the size or influence of the business,” Darien said.

On Thursday, X Global Government Affairs released a statement affirming its commitment to free speech, stating: “X is committed to protecting free speech within the boundaries of the law… We believe that the people of Brazil having access to X is essential for a thriving democracy.”

 

SEC to Seek Sanctions Against Elon Musk in Twitter Takeover Probe

The U.S. Securities and Exchange Commission (SEC) announced its intent to seek sanctions against Elon Musk after he failed to appear for a court-ordered testimony regarding his $44 billion acquisition of Twitter. According to a filing in a San Francisco federal court, Musk notified the SEC just three hours before his scheduled September 10 testimony that he would not attend.

The SEC claims Musk’s absence is part of a broader pattern of “gamesmanship” and delay tactics, and they will be filing a motion to hold him in civil contempt. Musk, who was at Cape Canaveral overseeing SpaceX’s Polaris Dawn mission on that day, argued through his lawyer, Alex Spiro, that his absence was an “emergency” and attending the launch was critical to astronaut safety.

The SEC’s investigation centers on whether Musk violated securities laws in early 2022 when he began accumulating Twitter stock. Shareholders and regulators have criticized Musk for delaying the disclosure of his ownership stake, which eventually reached 9.2%, beyond the 5% threshold that mandates public disclosure. Musk’s defense claims the delay was an oversight and that it was “a mistake” rather than intentional wrongdoing.

This latest conflict follows a longstanding feud between Musk and the SEC, dating back to 2018 when the regulator sued him over misleading tweets about taking Tesla private. Musk settled that lawsuit by paying a $20 million fine and stepping down as Tesla’s chairman.

Musk’s testimony has been rescheduled for October 3, but the SEC remains skeptical about his compliance. The regulator is pushing for clear consequences to ensure Musk does not continue to evade their investigation.

 

Brazil Telecom Regulator Seeks to Block Access to Elon Musk’s X Following Court Order

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