World Stock Watch

Brazilian Court Orders X to Pay $2 Million Fine Before Reinstatement

In a recent decision, Brazil’s top justice, Alexandre de Moraes, has ruled that X must pay a fine of 10 million reals (approximately $2 million) before the social media platform can be reinstated in the country. This comes after X was suspended nationwide in late August due to non-compliance with court orders.

The fine is a result of X’s failure to comply with the court’s demands to take down certain accounts in Brazil, which were deemed to be engaging in harmful activities. X’s legal representative in Brazil, Rachel de Oliveira, has also been ordered to pay a fine of 300,000 reals.

The controversy began in April when de Moraes initiated an investigation into X and its owner, Elon Musk, over alleged obstruction of justice. Musk had refused to comply with the court’s orders, calling them “censorship” and making public attacks on de Moraes.

In mid-August, Musk closed down X’s offices in Brazil, leaving the company without a legal representative in the country. This move was seen as a defiance of the court’s orders, leading to the suspension of X’s services in Brazil.

Earlier this month, X filed paperwork with Brazil’s supreme court, stating that it was now in compliance with the court’s orders. However, the court has ruled that X must still pay the fine for its previous non-compliance.

The case has sparked debate over free speech and online regulation in Brazil. De Moraes has been a vocal advocate for stricter regulations on social media platforms to combat hate speech and misinformation.

X faces increased competition in Brazil from other social media platforms, including Meta-owned Threads and Bluesky, which have gained popularity during its suspension. The company’s satellite internet service, Starlink, also faces competition from eSpace, a French-American firm that has been granted permission to operate in Brazil.

Legal experts believe that the court’s enforcement actions against X will set a precedent for how large technology companies operate in Brazil. As one attorney noted, “Big tech companies are now aware that the laws will be applied regardless of the size of a business and the magnitude of its reach in the country.”