Elon Musk’s Concedes to Judge De Moraes and Agrees to Block X in Brazil

The billionaire has partially stepped back from his campaign following the freezing of the finances of a satellite internet group due to fines imposed on a social media site.

Elon Musk’s satellite internet provider, Starlink, has reversed its stance and agreed to block access to his social media site X in Brazil, marking a partial retreat in the dispute between the billionaire and the Supreme Court of Latin America’s largest nation.

Starlink, a crucial tool for tens of thousands of Brazilians in remote areas like the Amazon rainforest, had previously stated it would not comply with a national ban on X, which is owned by Musk, calling the order from Supreme Court Justice Alexandre de Moraes “illegal.”

Last Friday, De Moraes ordered regulators to block access to the social media platform in Brazil after X failed to meet a deadline to appoint a legal representative in the country, a requirement under the country’s civil code.

Musk had earlier closed X’s office in Brazil amid an escalating dispute with De Moraes over court requests to remove accounts allegedly linked to far-right individuals and groups.

In a controversial move, the judge also froze Starlink’s bank accounts in Brazil last week, accusing it of being part of a “de facto economic unit” with X.

Starlink is a wholly-owned subsidiary of SpaceX, in which Musk holds about 40% of the shares but controls 79% of the voting rights.

The court stated that the decision to freeze Starlink’s accounts was an attempt to collect fines imposed on X for not complying with court orders.

After initially refusing to block access to X, Starlink faced the possibility of losing its license to operate in Brazil. The head of the telecommunications regulator Anatel, said that Starlink could lose its license if it was confirmed that it did not comply with De Moraes’ orders.

However, on Tuesday night, the satellite internet provider chose not to continue the confrontation.

“Following last week’s order from (De Moraes) that froze Starlink’s finances and prevented it from conducting financial transactions in Brazil, we immediately initiated legal proceedings in Brazil’s Supreme Court, explaining the severe illegality of this order and requesting the court to unfreeze our assets,” Starlink posted on X.

“Regardless of the illegal treatment of Starlink in the freezing of our assets, we are complying with the order to block access to X in Brazil,” the company stated.

With over 225,000 users in Brazil, Starlink is not among the country’s largest internet operators but is considered a vital tool for communities in remote areas such as the Amazon and the nation’s agricultural heartland.