3 months ago
19
Brazilian Supreme Court Justice Alexandre de Moraes has seized nearly $3 million from the bank accounts of social media platform
X
and satellite internet provider
Starlink
, both controlled by billionaire
Elon Musk
, in an effort to collect unpaid fines owed by X.
The move, aimed at collecting the amount equivalent to the fines owed by X, has raised legal questions, especially regarding the freezing of Starlink’s bank accounts.
Despite Musk's ownership of both X and SpaceX, which operates Starlink, the two companies are separate entities.
On Friday, Brazil’s Supreme Court confirmed that over 7.2 million reais ($1.3 million) were transferred from X's account, along with nearly 11 million reais ($2 million) from Starlink's account. The ruling was issued on Wednesday, and the bank accounts were unfrozen after full payment.
The case has sparked debate among legal experts. Lenio Streck, a prominent Brazilian jurist, questioned the logic of holding Starlink accountable for X's fines. "Starlink is a different company... It didn't even have a chance to defend itself," Streck argued.
However, some, like law professor Luis Henrique Machado, support de Moraes’ ruling. "The ruling is legitimate in imposing the transfer of the amounts in a compulsory fashion," he said, defending the fines imposed on X for refusing to remove flagged content.
The platform has repeatedly clashed with de Moraes over its refusal to block users, particularly far-right activists accused of undermining Brazilian democracy. Musk has labeled de Moraes a "dictator" over his rulings, which culminated in the temporary suspension of X in Brazil in August.
Despite its ongoing battles, X remains relatively small in Brazil, with an estimated 22 million users compared to larger platforms like Instagram and Facebook. Starlink, which began operations in the country in 2022, holds a 0.5% share of Brazil's internet market.
