Brazil’s Supreme Court has upheld an injunction against Elon Musk’s social media platform X (formerly Twitter), sending shockwaves through the tech world.
The five-judge panel unanimously ruled that Musk had refused to comply with Brazilian law, specifically the need to appoint legal representation in Brazil.
The ban not only affects Musk’s business, it also raises serious questions about freedom of speech and the role of foreign companies in local jurisdictions.
Elon Musk: Legal Battle
The fight between Musk and Brazilian authorities has been going on for months, but took a new turn when Judge Alexandre de Morais ordered social media platform X to remove accounts it suspected of spreading misinformation and hate speech.
Freedom of the press is the bedrock of democracy and Brazil’s unelected fake judges are destroying it for political purposes. https://t.co/eqbowALCeu
— Elon Musk (@elonmusk) August 30, 2024
When Musk’s policy failed to meet court-ordered deadlines for nominating a state representative, it was the Supreme Court’s turn to intervene.
Moraes added that Musk’s “apparent” disrespect for Brazilian law shows how the billionaire thinks he is “above the law.”
Moraes said:
“Any organization that deliberately violates a court ruling appears to place itself above the law. It may end up being an outlaw.”
The ban, which came into effect over the weekend, poses a huge threat to X’s operations, which has around 40 million users in Brazil.
The court’s decision requires all telecommunications operators in Brazil to stop operating X until the platform is brought into compliance with the law.
Additionally, anyone using the platform via a VPN could face huge fines of up to R$50,000 (around $9,000) per day.
The billionaire’s reaction
Musk didn’t let the ruling go. He went to X and attacked Brazil’s Supreme Court and its judges, calling Moraes a “dictator” and saying the ban was an attack on freedom of speech.
SpaceX and X are two completely different companies and have different shareholders. I own about 40% of SpaceX, so this completely illegal action by the dictator is @Alexandre Unfairly punishing other shareholders and the Brazilian people. https://t.co/zIzcT0BTJl
— Elon Musk (@elonmusk) August 29, 2024
In one thread, Musk called Moraes “Brazil’s Voldemort” and adamantly argued that a ban would not stop Brazilians from uncovering his “illegal, shameful and hypocritical actions.”
But his response highlights the tension between his vision of free expression and the Brazilian government’s attempts to regulate online content.
Broader meaning
These developments have broader implications for how social media companies operate in international markets.
Brazil’s ban directly addresses concerns about misinformation and corporate accountability ahead of local laws.
Dogecoin market cap currently at $14.4 billion. Chart: TradingView.com
Judge Flavio Dino stressed that wealth and influence do not give immunity, and warned against “individual dictators” who could dictate regulation on social media platforms.
Impact on Dogecoin Price
The possibility of X (formerly Twitter) being banned in Brazil would have a very serious impact on the price movement of DOGE. The crypto community of DOGE relies heavily on social platforms for real-time market updates and discussions.
DOGE down in the last week. Source: Coingecko
Since X is one of the world’s largest platforms for cryptocurrency investors, simply banning the platform in Brazil could potentially limit DOGE enthusiasts’ access to important updates and insights on the cryptocurrency market. Any disruption to the flow of information could make DOGE more volatile and spread uncertainty about its price movements.
X was the platform where Dogecoin gained a lot of visibility and support from influential figures like Elon Musk. This ban could reduce the potential for new investors to be exposed to DOGE and slow its adoption in Brazil, which could reduce the growth of the virtual asset price in the short term.
According to data from Coingecko, Dogecoin was trading at $0.099 at the time of writing, up 4.3% in the last 24 hours but down 6.6% over the past week.
Featured image from Pixabay, Charts from TradingView