In a major legal clash, Brazil’s Supreme Court has seized $3.3 million from the bank accounts of Elon Musk’s companies, X (formerly Twitter) and Starlink, in response to unpaid fines. Justice Alexandre de Moraes ordered the move after X refused to comply with the court’s request to remove certain flagged content from the platform.
Background of the Dispute
The ongoing tension between Musk’s companies and the Brazilian judiciary escalated when X did not comply with orders to remove posts deemed illegal, primarily tied to far-right supporters of ex-president Jair Bolsonaro. In response to these violations, the court imposed hefty fines on X, which Musk’s platform failed to pay. As a result, Brazil froze bank accounts and later withdrew the funds to settle the fines.
Starlink, though a separate company under Musk’s ownership, was also implicated. The court argued that both companies belong to Musk’s economic empire, justifying the seizure of funds from Starlink’s accounts, even though it wasn’t directly involved in X’s infractions.
Legal Opinions
This move has sparked controversy, with legal experts questioning the inclusion of Starlink. Some analysts argue that Starlink, despite sharing ownership with X, is a separate entity and shouldn’t be liable for the social media platform’s actions. However, other legal scholars defend the court’s decision, citing the necessity of enforcing the fines due to X’s defiance.
Unfreezing of Accounts
Following the withdrawal of the $3.3 million, the court unblocked the frozen bank accounts of both companies. De Moraes has since warned of additional penalties for individuals or groups using virtual private networks (VPNs) to bypass the platform’s ban, a penalty of $9,000 per day.
Conclusion
This legal battle between Musk and Brazil continues to unfold, with X still banned in the country. The dispute has far-reaching implications for tech companies operating in Brazil, especially in how they handle local laws and regulations regarding online content.
Credit: This article is based on information from Hindustan Times
Summary:
Brazil seized $3.3 million from X and Starlink over unpaid fines.
The dispute centers around X’s refusal to remove flagged content.
Legal experts are divided on including Starlink in the penalty.
X remains banned in Brazil, and further penalties are in place for bypassing the ban.
