Brazil has taken drastic action against billionaire Elon Musk’s companies, seizing $3.3 million from his social media platform, X (formerly Twitter), and satellite internet provider, Starlink. This all started with a decision by the Brazilian Supreme Court, which unblocked the companies’ bank accounts, only to withdraw the funds to enforce a hefty fine.
At the end of August, Brazilian judge Alexandre de Moraes banned X from operating in Brazil and froze Starlink’s assets, claiming that both companies were financially linked. He also fined the companies for not removing certain content and for not having a legal representative in Brazil. The total fine amounted to 18.35 million Brazilian reals (around $3.3 million). Of this, 11 million came from Starlink, and the rest from X.
Musk has been vocal about his displeasure, calling the seizure “absolutely illegal,” arguing that Starlink and X are separate entities with different shareholders. He even threatened to retaliate by seizing Brazilian government assets in the U.S. if the funds are not returned. Musk took to social media, saying, “Hope Lula enjoys flying commercial,” a jab at Brazilian President Luis Ignacio Lula da Silva.
This dispute traces back to April, when Judge de Moraes ordered X to delete accounts belonging to supporters of former Brazilian President Jair Bolsonaro. These individuals were accused of spreading false information about the court. Musk refused to comply, stating that such actions would violate Brazilian law. Since then, the situation has escalated into a major conflict between the tech mogul and Brazilian authorities.
The Brazilian court, determined to enforce its ruling, even considered fining anyone who used a virtual private network (VPN) to access X after the platform was banned in the country. Despite this, many prominent Brazilians, including political parties, continue to use X without facing penalties.
On top of that, Brazil’s telecommunications regulator, Anatel, has hinted at possible sanctions against Starlink for its non-compliance with the court’s orders. There is a chance that Starlink’s operating license in Brazil could be revoked, potentially cutting off internet access for its users there.
Musk has not backed down. He’s said he’ll continue providing free internet through Starlink to his Brazilian customers and is ready to challenge the Brazilian government in any way necessary. This fierce battle between one of the world’s richest men and a powerful national government is far from over. The outcome could reshape how major tech companies operate in countries with strict legal frameworks.
