Social media giant X platform announced that the Supreme Court of Brazil is expected to order the closure of the platform later on Thursday (August 29th) as Brazilian judges and X platform owner Elon Musk are in a fierce battle over compliance with local laws and fines regarding the platform.
According to reports from Reuters, the popular social media platform made this announcement on its global affairs account, stating that it is expected that Brazilian Supreme Court judge Alexandre de Moraes will soon order the closure of X platform after the deadline set by the court.
Earlier on Thursday, the Brazilian Supreme Court froze the billionaire Musk’s account for his “Starlink” satellite internet company in local banks, in which Musk holds a 40% stake. At the same time, disputes surrounding X platform have put one of its largest markets at risk of being shut down.
Starlink company previously confirmed receiving the judge’s order, prohibiting the company from conducting financial transactions in Brazil.
On Thursday evening, Musk criticized Moraes on the X platform website, stating that the decision to block Starlink transactions is illegal and would unfairly punish other shareholders and ordinary Brazilians.
A source from the Brazilian Supreme Court told Reuters that the decision to sanction Starlink signed by Moraes is a response to the lack of legal representatives for X platform in Brazil.
The decision to freeze Starlink’s bank accounts also stemmed from another dispute, where a judge ordered fines on X company for failing to submit certain documents, which X did not pay.
The Supreme Court ordered that X company must designate its legal representative in Brazil by the deadline just past 8 p.m. on Thursday (11 p.m. Greenwich Mean Time).
The dispute has escalated, focusing on whether Moraes can order X platform to block accounts accused of spreading lies and distorting facts, which Musk condemns as a censorship system.
Brazilian law requires all internet companies operating in the country to have a legal representative who can receive judicial orders and be legally responsible for the company’s operations.
Late on Wednesday, Moraes signed an order requiring X platform to designate a legal representative, otherwise facing penalties of suspension in the country.
Musk previously complained in a post on X platform, calling Moraes “a thoroughly despicable criminal disguised as a judge.”
Starlink company also accused in a post that the judge issued orders in secret without due process.