Social media platform X, until recently known as Twitter, announced on Saturday that it would close in Brazil. The move reacted to the increasingly hostile relationship with local authorities, most of all with Supreme Court Justice Alexandre de Moraes. This revealed a burgeoning dustup over free speech, censorship, and technology companies’ challenges in highly politicized environments.
Justice de Moraes’s serious threat has led to X shutting down its operations in Brazil. He reportedly warned that the platform’s legal representative in Brazil could face arrest if it did not comply with and obey orders to remove specific content. This was ordered as part of a broad investigation into “digital militias” accused of pushing misinformation and hate speech during Jair Bolsonaro’s presidency.
X forced to close operations in Brazil after threats of ARREST by government officials. 😬‼️ pic.twitter.com/nCTuP9Jgd8
— DramaAlert (@DramaAlert) August 17, 2024
Given the threat to its employees, X decided to shut down immediately in Brazil. It issued a statement that its local employees had no control over content moderation decisions and were under undue pressure. The Brazilian court had also ordered a fine of £16,000 per day, apart from the threat of arrest, for non-compliance—a financial embarrassment for the platform.
Although X will shut down the operation, users in Brazil will still be able to use the services. This simply means that even though the platform’s physical existence will come to an end in the country, Brazilian users can continue using it. The closure might cost X a huge loss since Brazil is one of the biggest markets it holds in South America, with over 21 million users.
Its owner, Elon Musk, has signaled that his company might continue to come down on the side of principle over profit. Indeed, last week, he publicly rebuked Justice de Moraes, calling for his resignation and labeling his actions “unconstitutional” and a form of “aggressive censorship.” That position has implications extending beyond this unusual case to a deeper argument about balancing free speech and online content regulation—especially in political beartrap contexts.
“He is an utter disgrace to justice.”
– Elon Musk pic.twitter.com/7awFdjJEWt
— DramaAlert (@DramaAlert) August 17, 2024
These tensions between X and the Brazilian authorities are not one-off cases. The right to freedom of expression in Brazil has been gravely threatened since Bolsonaro assumed office in January 2019, accompanied by widespread reports of harassment and censorship against journalists, which has instilled fear. Also, disinformation campaigns and government meddling with state communication channels have further complicated the context within the media environment. Nevertheless, throughout it all, reporting on state wrongdoings still occurs.
In 2020, Brazil’s Congress penned the so-called ‘Fake News Bill’, outlining provisions that would regulate social networks. Some of the world’s biggest technology companies, like Google, have reacted to it, citing increased and unwanted scrutiny. The tech industry resists such regulation, showing a continuous battle between digital platforms and governmental control.
This decision for X to shut down its operations in Brazil is at a cost. That might translate to losing millions in revenues and some market presence within the region. On the other hand, Musk’s decision explains why free speech may have to be more important than financial benefits to the tech businesses, engaging in hardening responsibilities for such companies at the intersection of global politics, regulation, and corporate responsibility.
Currently, there are no confirmed plans for X to reopen its operations in Brazil. The company seems to still be very cautious regarding the safety of staff and judiciary processes against them. It’s all still very fluid, and any possible return would depend on shifts in the country’s regulatory environment and the guarantee of safety for X’s operations in Brazil.
