Musk's Starlink Backtracks and Says it Will Comply With Judge's Order to Block X in Brazil

Photo illustration of the logo of the social media platform X (former Twitter) in Rio de Janeiro, Brazil on August 30, 2024. (Photo by MAURO PIMENTEL / AFP)
Photo illustration of the logo of the social media platform X (former Twitter) in Rio de Janeiro, Brazil on August 30, 2024. (Photo by MAURO PIMENTEL / AFP)
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Musk's Starlink Backtracks and Says it Will Comply With Judge's Order to Block X in Brazil

Photo illustration of the logo of the social media platform X (former Twitter) in Rio de Janeiro, Brazil on August 30, 2024. (Photo by MAURO PIMENTEL / AFP)
Photo illustration of the logo of the social media platform X (former Twitter) in Rio de Janeiro, Brazil on August 30, 2024. (Photo by MAURO PIMENTEL / AFP)

Elon Musk’s satellite-based internet service provider Starlink backtracked Tuesday and said it will comply with a Brazilian Supreme Court justice's order to block the billionaire’s social media platform, X.
Starlink said in a statement posted on X that it will heed Justice Alexandre de Moraes' order despite him having frozen the company's assets. Previously, it informally told the telecommunications regulator that it would not comply until de Moraes reversed course.
“Regardless of the illegal treatment of Starlink in freezing our assets, we are complying with the order to block access to X in Brazil," the company statement said. "We continue to pursue all legal avenues, as are others who agree that @alexandre's recent order violate the Brazilian constitution.”
De Moraes froze Starlink's accounts last week as a means to compel it to cover X’s fines that already exceeded $3 million, reasoning that the two companies are part of the same economic group. Starlink filed an appeal, its law firm Veirano told the Associated Press on Aug. 30, but has declined to comment further in the days since.
Days later, the justice ordered the suspension of X for refusing to name a local legal representative, as required in order to receive notifications of court decisions and swiftly take any requisite action — particularly, in X's case, the takedown of accounts. A Supreme Court panel unanimously upheld the block on Monday, undermining efforts by Musk and his supporters to cast the justice as an authoritarian renegade intent on censoring political speech in Brazil.
Had Starlink continued to disobey de Moraes by providing access, telecommunications regulator Anatel could eventually have seized equipment from Starlink’s 23 ground stations that ensure the quality of its internet service, Arthur Coimbra, an Anatel board member, said on a video call from his office in Brasilia.
Already some legal experts questioned de Moraes’ basis for freezing Starlink’s accounts, given that its parent company SpaceX has no integration with X. Musk noted on X that the two companies have different shareholder structures.
X has clashed with de Moraes over its reluctance to block users — mostly far-right activists accused of undermining Brazilian democracy and allies of former President Jair Bolsonaro — and has alleged that de Moraes wants an in-country legal representative so that Brazilian authorities can exert leverage over the company by having someone to arrest. And Musk has been relentlessly posting in recent days, lambasting de Moraes as a criminal.
“This evil tyrant is a disgrace to judges' robes,” Musk wrote on X along with a photo of de Moraes some 17 hours before Starlink announced its decision to comply with the order.
He hasn't posted about the company's operations in Brazil since its announcement.
The reversal comes as a relief to those in Brazil who have come to depend on Starlink. The company has said it has more than 250,000 customers in the country, many of whom are in remote areas that wouldn’t have fast internet access otherwise.
Before Starlink, internet access in many of these areas came from slow, unstable fixed antennae. Its easy-to-install kits and high-quality connections have transformed communication in some communities, surpassing even major Amazonian cities in speed.
The Forest People Connection project, founded in 2022 with Musk-donated Starlink terminals, has so far brought them to 1,014 remote communities, including riverine and Indigenous peoples. The Yanomami are among them. Living in a far-flung corner of Brazil's rainforest, they had faced a severe health crisis, but now have access to Starlink-powered telemedicine consults and reliable communication for emergency transport of patients.
Improved connectivity has also facilitated illegal activities, such as gold mining.
While Brazil's massive territory with vast rural and forested areas makes it a key growth market for Starlink, its presence isn’t yet as large as Musk has led some to believe. On Sunday, he shared someone else’s post that showed him meeting Bolsonaro in 2022 and noted that the duo claimed to have struck a partnership to bring Starlink to 19,000 schools. Musk touted the deal on X at the time.
It never happened. As of March 2023, SpaceX and the communications ministry hadn’t signed any contract, and only three terminals had been installed in Amazon schools for a 12-month trial period. The ministry’s press office didn't immediately answer an AP request for updated information about these contracts on Tuesday. Brazil’s education ministry told the AP that states are responsible for signing contracts with internet service providers.
Since January 2022, when Starlink began operations in Brazil, it has captured a 0.5 percent share of the internet market, trailing significantly behind leading providers, according to Anatel.
Although Starlink has retreated and says it will now block X, Musk's bravado in recent days has boosted his hero status in the eyes of his fans, said Marietje Schaake, the international policy director at Stanford University Cyber Policy Center.
“The battle of the titans, between de Moraes and Musk, reminds us of how powerful, political and provocative tech leaders have become," said Schaake, who is also author of the forthcoming book “The Tech Coup: How to Save Democracy from Silicon Valley”.
"Brazil won’t be that last country to seek accountability or to put up guardrails.”



Latest US Strike on China's Chips Hits Semiconductor Toolmakers

Flags of China and US are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
Flags of China and US are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
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Latest US Strike on China's Chips Hits Semiconductor Toolmakers

Flags of China and US are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
Flags of China and US are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo

The United States on Monday launched its third crackdown in three years on China's semiconductor industry, curbing exports to 140 companies including chip equipment maker Naura Technology Group, among other moves.

The effort to hobble Beijing's chipmaking ambitions also hits Chinese chip toolmakers Piotech and SiCarrier Technology with new export restrictions as part of the package, which also takes aim at shipments of advanced memory chips and more chipmaking tools to China.

The move is one of the Biden administration's last large-scale efforts to stymie China's ability to access and produce chips that can help advance artificial intelligence for military applications, or otherwise threaten US national security.

It comes just weeks before the swearing-in of Republican former president Donald Trump, who is expected to retain many of Biden's tough-on-China measures, according to Reuters.

The package includes curbs on China-bound shipments of high bandwidth memory (HBM) chips, critical for high-end applications like AI training; new curbs on 24 additional chipmaking tools and three software tools; and new export curbs on chipmaking equipment made in countries such as Singapore and Malaysia.

Commerce Secretary Gina Raimondo said the action aims to prevent "China from advancing its domestic semiconductor manufacturing system, which it will use to support its military modernization."

Reuters first reported many companies involved and key details of the plan.

The tool controls will likely hurt Lam Research, KLA and Applied Materials, as well as non-US companies like Dutch equipment maker ASM International .

Among Chinese companies facing new restrictions are nearly two dozen semiconductor companies, two investment companies and over 100 chipmaking tool makers.

The companies include Swaysure Technology Co, SiEn Qingdao, and Shenzhen Pensun Technology Co, work with China's Huawei Technologies, the telecommunications equipment leader once hobbled by US sanctions and now at the center of China's advanced chip production and development.

They will be added to the entity list, which bars US suppliers from shipping to them without first receiving a special license.

Asked about the US curbs, Chinese foreign ministry spokesman Lin Jian said such behaviour undermined the international economic trade order and disrupted global supply chains.

China will take measures to safeguard the rights and interests of its firms, he added at a regular press briefing on Monday.

The Chinese commerce ministry did not immediately respond to a request for comment.

China has stepped up its drive to become self-sufficient in the semiconductor sector in recent years, as the US and other countries have restricted exports of the advanced chips and the tools to make them. However, it remains years behind chip industry leaders like Nvidia in AI chips and chip equipment maker ASML in the Netherlands.

The US also is poised to place additional restrictions on Semiconductor Manufacturing International, China's largest contract chip manufacturer, which was placed on the Entity List in 2020 but with a policy that allowed billions of dollars worth of licenses to ship goods to it to be granted.

For the first time, the US will add three companies that make investments in chips to the entity list. Chinese private equity firm Wise Road Capital, tech firm Wingtech Technology Co and JAC Capital because of their role "in aiding China’s government’s efforts to acquire entities with sensitive semiconductor manufacturing capability critical to the defense industrial bases of the United States and its allies with the objective of relocating these entities to China."

Companies seeking licenses to ship to firms on the Entity List generally get denied.

DUTCH AND JAPANESE EXEMPTED

An aspect of the new package that addresses the foreign direct product rule could hurt some US allies by limiting what their companies can ship to China.

The new rule will expand US powers to curb exports of chipmaking equipment by US, Japanese, and Dutch manufacturers made in other parts of the world to certain chip plants in China.

Equipment made in Israel, Malaysia, Singapore, South Korea and Taiwan is subject to the rule while Japan and the Netherlands will be exempt.

The expanded foreign direct product rule will apply to 16 companies on the entity list that are seen as the most important to China's most advanced chipmaking ambitions. The rule will also lower to zero the amount of US content that determines when certain foreign items are subject to US control. That will allow the US to regulate any item shipped to China from overseas if it contains any US chips.

The new rules are being released after lengthy discussions with Japan and the Netherlands, which, along with the United States, dominate the production of advanced chipmaking equipment.

The United States plans to exempt countries that adopt similar controls, the people said.

Another rule in the package restricts memory used in AI chips that correspond with what is known as "HBM 2" and higher, technology made by South Korea's Samsung and SK Hynix and US-based Micron.

Industry sources expect only Samsung Electronics to be affected. Analysts estimate Samsung generates about 30% of its HBM chip sales from China.

The latest rules are the third major package of chip-related export curbs on China adopted under the Biden administration.

In October 2022, the United States published a sweeping set of controls on sale and manufacture of certain high-end chips that was considered to be the biggest shift in its tech policy toward China since the 1990s.