Brazil bans Starlink accounts in quarrel with Musk
(MENAFN) Elon Musk's satellite internet company, Starlink, has encountered a significant legal challenge in Brazil, where the country's Supreme Court has ordered a freeze on the company's financial accounts. The directive, issued by Supreme Court Judge Alexandre de Moraes, blocks Starlink from conducting any financial transactions within Brazil. This action is part of a broader dispute involving Musk's social media platform X, formerly known as Twitter.
The judicial decision is linked to ongoing issues regarding X's legal representation in Brazil. Judge de Moraes had previously mandated that Musk appoint a new legal representative for X within 24 hours, failing which the platform would face suspension in Brazil, the largest country in Latin America. The court's order is a response to X's failure to comply with local legal requirements concerning its representation.
Musk has vehemently criticized the court's actions, arguing that they represent an attempt to punish his platform for resisting censorship. In a statement on X, Musk condemned Judge de Moraes, claiming that the order unfairly targets Starlink, a separate entity from X, and is an unjust move against the interests of other shareholders and the Brazilian populace. He highlighted that he holds approximately 40% ownership in SpaceX, the parent company of Starlink, and suggested that the court’s decision is an overreach of authority.
Starlink, for its part, has claimed that the court's order was issued without proper legal procedure and in secrecy, depriving the company of its constitutional rights in Brazil. The company has argued that it should not be held accountable for the penalties imposed on X, asserting that the sanctions against Starlink are baseless and unconstitutional.
The situation underscores a growing tension between international companies and national legal systems, particularly as they navigate regulatory environments and legal disputes across borders. The outcome of this standoff could have broader implications for how global tech giants manage legal and financial obligations in foreign markets.
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