In a surprising turn of events, Brazil’s Supreme Court has lifted the ban on X (formerly Twitter) after Elon Musk complied with local demands, which included removing certain accounts and appointing legal representation in the country, according to Bloomberg. The court had initially blocked the social media platform due to Musk’s refusal to follow Brazilian regulations. This sparked a months-long conflict between Musk and Supreme Court Justice Alexandre de Moraes.
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Musk had previously shut down X’s office in Brazil in protest of orders to remove user profiles, which the government claimed were dangerous to democracy. The Supreme Court took action by banning the platform and imposing fines on Musk’s Starlink for non-compliance. Eventually, Musk gave in to the demands, hiring lawyers and paying fines to lift the suspension, which ended the standoff.
This feud, largely centered on free speech versus regulation, attracted widespread attention as Musk framed it as a fight for free speech while the court emphasized the need to curb hate speech and misinformation. Many accounts ordered to be removed were tied to former President Bolsonaro’s supporters, who had used the platform to spread unfounded claims about Brazil’s election results.
X Has Been Struggling Since Musk’s Takeover
It is no secret that X has been struggling since Musk took over the platform. Ad revenue declined by 55% year-over-year in 2023, according to Reuters, as advertisers grew uncomfortable with Musk’s changes. This has led to a significant drop in X’s value, falling from $44 billion (Musk’s purchase price) to around $9.2 billion, according to recent estimates from Fidelity. These struggles are likely what led to Musk’s decision to settle the dispute with Brazil.
