Brazil Freezes Starlink Account with a 'Heavy Blow'... Musk Calls It a "Evil Tyrant"

X, Refusal to Comply with Order to Block Fake News Dissemination Accounts

Brazilian judicial authorities have dealt a blow to Elon Musk, CEO of Tesla, and his satellite internet network 'Starlink' as well as the social networking service X (formerly Twitter), major foreign media reported on the 29th (local time).

According to sources from the Brazilian Supreme Court, Justice Alexandre de Moraes ordered the freezing of Starlink's financial accounts in Brazil to enforce the payment of fines imposed on X. Although the fines were imposed on X, local media G1 explained that the judiciary's judgment was based on the view that Starlink should also be regarded as a de facto economic group under the direction of CEO Musk.

[Image source=AP Yonhap News]

Currently, the Brazilian Supreme Court and CEO Musk are locked in an uncompromising confrontation over 'crackdown on fake news' and 'freedom of the press.' Earlier, in April, the Brazilian Supreme Court ordered X to block accounts related to the so-called 'digital militia.' These accounts were accused of spreading fake news and hate messages during the administration of former President Jair Bolsonaro. It is also interpreted as an attempt to preemptively remove variables that could negatively affect the upcoming local elections in October.

However, X has protested that the Brazilian Supreme Court forced it to block certain popular local accounts and stated that it was threatened with the arrest of its legal representative in Brazil and a daily fine of 20,000 reais (approximately 4.8 million KRW) if it failed to comply with the order. In response, the company announced that while it would maintain the service, it decided to immediately lay off all employees in Brazil and close its business locations.

CEO Musk emphasized that "SpaceX (Starlink's parent company) and X are completely separate companies with different shareholders," calling the freezing of Starlink's financial accounts a clear illegal act. He criticized Justice de Moraes as an "evil dictator posing as a judge" and pointed out that innocent X users in Brazil are suffering unjustly. Starlink also announced plans for legal action, stating that the decision to freeze the accounts was made secretly without providing due process guaranteed by the Brazilian constitution.

X is one of the widely used online communication tools in Brazil. According to market research firm eMarketer, cited by the Associated Press, about 40 million Brazilians use X at least once a month. This accounts for about one-fifth of Brazil's population (approximately 200 million). From CEO Musk's perspective, Brazil is an indispensable market. He said, "We will provide free internet service to Starlink users in Brazil until the situation is resolved," adding, "Even if we do not receive money, we do not want to disconnect from anyone."