X is facing an extra $1.9 million penalty as part of its ongoing efforts to resume operations in Brazil. This latest fine is in addition to the $3.4 million it already owes, as ruled by Brazil's Supreme Court. Without settling these fines, the social network will remain banned in one of its largest international markets.
Judge Alexandre de Moraes, overseeing the case, stated that X could reinstate its service in Brazil if it pays these accumulated fines and drops its appeal against the government's earlier decision to freeze the platform's and Starlink's accounts. Elon Musk's satellite internet company, Starlink, is also involved in the legal proceedings due to the same court orders.
X's Troubles in Brazil: Misinformation and Compliance Issues
In September 2024, Brazil's Supreme Court sustained the ban against the social media platform X, formerly known as Twitter. The decision follows X's failure to designate a new legal representative in Brazil by the stipulated court deadline.
The restriction on X began earlier the same month, stemming from an ongoing dispute between Supreme Court Justice Alexandre de Moraes and X's owner, Elon Musk. The conflict started in April when Justice Moraes ordered various accounts to be suspended for spreading disinformation, targeting primarily supporters of former president Jair Bolsonaro.
With X out of reach, Brazilians have pivoted to other microblogging services such as Bluesky and Threads. Bluesky's user count has skyrocketed to over 9 million, fueled by an addition of 3 million newcomers.
The 50% spike occurred in just over a week following a ban on X, formerly known as Twitter, by a Brazilian court. Bluesky's surge has been dramatic since its started to benefit from X's ban. Last week, the Supreme Court upheld its decision after X briefly became available again.
Financial Roadblocks to Service Resumption
Getting back online in Brazil is further complicated by the financial obstacles facing X. The social media platform must pay the original $3.4 million in fines, as well as the newly imposed $1.9 million, before it can resume operations. While the court has frozen X and Starlink's accounts, it has stipulated that Starlink must abandon its appeal against the asset freeze to move forward.
X's legal representatives have signaled their intent to pay the previously ordered fines but may challenge the extra 10 million reais ($1.9 million) fine. At this point, the platform has not commented officially on its next steps regarding the case.
In a public statement, X's Global Government Affairs account acknowledged the situation, reaffirming that the platform respects the sovereignty of the nations in which it operates. The post highlighted that maintaining access to X for Brazilian users is vital for promoting democratic engagement, a notable shift from Musk's earlier criticisms of Brazil's judicial actions.
