Moraes suspends platform 'X' in Brazil due to lack of legal representative; Understand the reason for the penalty applied to the old Twitter
The Brazilian Minister took this decision after Elon Musk failed to comply with the order to designate a legal representative of the social network in the country. Moraes established a daily fine of R$50,000 for any person or company that uses any type of subterfuge, such as VPNs, to access X, even though the site is banned in the national territory.
The suspension of X in Brazil could harm creators and advertisers - Photo Reproduction / Kovop/Shutterstock
Minister Alexandre de Moraes, of the Federal Supreme Court (STF), ordered this Friday (30), the suspension of the 'X' platform in Brazil due to the absence of a legal representative in the country. He also notified the National Telecommunications Agency (Anatel), requesting that the network be cut across the entire national territory within a maximum period of 24 hours. Now, it is up to Anatel to instruct internet operators to suspend users' access to X. However, the takedown may not be immediate due to technical issues.
The Context of the Decision
The 'X' platform, formerly known as Twitter, has faced several legal issues in Brazil, especially related to its compliance with local legislation. The requirement for a legal representative is one of several rules that aim to ensure that foreign companies comply with Brazilian regulations and can be held responsible for any infraction. Moraes decided to act after the company failed to comply with the order to appoint its legal representative in the country.
On Wednesday (28), he granted a period of 24 hours for X to comply with the determination, but this period expired at 8:07 pm this Thursday (29). The minister had also demanded the payment of outstanding fines, which were imposed due to the network's disobedience in removing profiles that, according to the Court, violated the law by spreading false information and attacking democratic institutions. The fines total R$18 million, and X also failed to comply with this order.
X closed its operations in Brazil on August 17, citing that Moraes had threatened to arrest the company's then legal representative in the country. The company had been disobeying court orders to remove profiles with scam content or that attacked institutions. After the deadline set at 8:07 p.m., ".
Billionaire Elon Musk, owner of company X and one of the technology magnates of Silicon Valley in California (USA), has attacked minister Alexandre de Moraes on social media. These attacks are a reaction to Moraes' decisions that require the removal of profiles that promote attacks on democratic institutions.
Reasons for the Penalty
Mandatory Legal Representative: According to Brazilian legislation, foreign companies operating in the country must designate a legal representative responsible for their activities and for complying with local regulations. The absence of this representative prevents the effective application of the law and the resolution of possible conflicts or complaints.
Compliance with Legislation: The government and regulatory authorities have sought greater control and compliance of digital platforms to protect user rights and ensure the application of Brazilian laws, such as the Marco Civil da Internet and the General Data Protection Law (LGPD).
Responsibility and Transparency: Having a legal representative in Brazil makes it easier to hold the company accountable for any irregularities and improves the transparency of operations. This also ensures that the company can be called to account for issues related to content, privacy and security.
Starlink blocking
Given the absence of a legal representative of the social network X in Brazil, Minister Moraes ordered the blocking of the accounts of the company Starlink Holding, which is also owned by billionaire Elon Musk. In a post on X, Starlink described Moraes' decisions as "unconstitutional" and said it intends to appeal to the courts. Elon Musk also spoke out on his profile, clarifying that SpaceX, Starlink and X (formerly known as Twitter) are distinct entities, with different shareholders, and that he owns 40% of Starlink. Musk criticized the action as "absolutely illegal" and stated that the Brazilian minister is unfairly penalizing other shareholders and the Brazilian people.
Suspension Impacts
The suspension of the 'X' platform could have significant impacts, not only for Brazilian users, but also for the company itself. The absence of the platform can limit communication and access to information for many Brazilians who depend on it for social interactions, news and business. According to experts, the impacts of the blockade on advertising investments will depend on the duration of the suspension. If it is brief, the effects will be minimal. "The situation would be different if the blockade occurred during a major event, such as the Olympic Games or the BBB," notes an expert.
On the other hand, if the lockdown lasts longer, the executive believes that brands should adjust their strategies. Some may review their approaches and reallocate the budget that was earmarked for X to other platforms with a similar target audience. Advertising investments can also accompany the migration of users who were left without the social network. This is an opportune moment for networks with characteristics similar to X to gain prominence. An example of this was the case of Koo, which closed its operations after Musk announced changes to the former Twitter with the acquisition of the platform.
Threads, developed by Meta to compete with Twitter, could also benefit from the suspension of Twitter. BlueSky was created in 2019. This suspension could affect specialized content creators who have a significant base on the platform, causing them to face strategic impacts and possibly lose a competitive advantage, albeit temporarily.
