Brazilian authorities may pressure X (formerly Twitter) to restore services promptly in the country – on condition that it pays a significant fine.
According to reports by Reuters and other publications, X has been threatened with a fine of approximately 10 million reais ($1.9 million) if it fails to comply with regulations in the national territory.
The additional fine of R$5.6 million ($1.2 million) was imposed on top of the existing R$18.3 million ($3.4 million) penalty that X had previously been ordered to pay. Brazil has frozen bank accounts tied to SpaceX’s Starlink satellite TV service, pending payment of a fine, with Judge Moraes stressing that Starlink must withdraw its appeal to proceed.
Throughout much of the year, X has been embroiled in a contentious legal struggle against Moraes, who sought to freeze certain bank accounts that X accused of disseminating false information about the election. The CEO’s future remains uncertain as critics call for his resignation or impeachment, citing concerns over company performance.
As a result of the ban, several rival companies surged in popularity.
Recently, however, the company has agreed to settle by shutting down designated accounts, paying the necessary fines, and designating an authorized representative in Brazil. Moraes demands the corporation compensate him for the exceptional circumstances arising from X’s sudden switch to Cloudflare, which allowed them to bypass an earlier ban and restart services nationwide, effective immediately.
The X’s World Authorities Affairs account seemingly capitulated on this matter, posting: “We recognize and respect the sovereign authority of nations operating within our scope,” while insisting that facilitating access for Brazilian users is essential to a vibrant democratic system.