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.”



Tesla's China-made EV Sales in August up 3% yr/yr

16 June 2015, Ebringen: The logo of Tesla electric vehicle company is pictured on an S model vehicle. (dpa)
16 June 2015, Ebringen: The logo of Tesla electric vehicle company is pictured on an S model vehicle. (dpa)
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Tesla's China-made EV Sales in August up 3% yr/yr

16 June 2015, Ebringen: The logo of Tesla electric vehicle company is pictured on an S model vehicle. (dpa)
16 June 2015, Ebringen: The logo of Tesla electric vehicle company is pictured on an S model vehicle. (dpa)

Sales of US automaker Tesla's China-made electric vehicles grew 3% in August from a year earlier, data from the China Passenger Car Association (CPCA) showed on Monday.

Deliveries of its China-made Model 3 and Model Y vehicles rose 17% from July, Reuters reported.

Chinese rival BYD, with its Dynasty and Ocean series of EVs and plug-in hybrids, posted a 35.3% year-on-year jump in passenger vehicle sales in August to a fresh monthly high of 370,854 units.

Other local EV competitors including Leapmotor and Li Auto also reported higher sales.

Tesla's rising China numbers, including domestic sales and exports to Europe and elsewhere, came amid extended incentives for local buyers as well as breakthroughs in winning over government backing.

An uptrend in Tesla's China sales seems to be underway in the third-quarter even though its local sales force has undergone downsizing as part of the US EV giant's global layoffs.

In July, Tesla saw a 78% year-on-year increase in deliveries in tier-three cities while its sales in the second-tier cities such as Hangzhou and Nanjing rose by 47%, data and analysis by China Merchants Bank International (CMBI) showed.

"We project Tesla's retail sales volume to hit 65,000 units in August aided by strong growth in smaller cities. Should such momentum continue in September, Tesla may post the highest quarterly sales volume in China in 3Q24," said Shi Ji, an analyst with CMBI in Hong Kong.

Tesla has been offering a financing plan with a zero-interest loan of up to five years since April to attract buyers who tend to be more cautious with spending on big-ticket items in a sputtering economy.

The company has won endorsement from several local governments which have deemed Tesla cars eligible for official car purchases in recent weeks.

The country's top auto industry association said in April the data collection by Tesla vehicles in China was compliant, paving the way for Tesla cars to enter some government compounds that they used to be banned from.