Restrictive measures on X and Starlink may have a negative impact on businesses in the country

Supreme Court Justice Alexandre de Moraes took down the X platform – formerly Twitter – last Friday (30). The decision was to immediately suspend the social network, with 24 hours for Anatel to cut off access. This Monday (2), there was a vote among the five ministers of the first group of the STF – Carmen Lúcia, Cristiano Zanin, Flávio Dino, Luiz Fux and Moraes himself -, with all voting in favor of suspending the platform.

The situation is due to conflicts between Moraes and Elon Musk, owner of X. “bullshit” between them began in April of this year. The billionaire argues that measures in the form of censorship were demanded, while the minister guarantees that he is guided by Brazilian law.

Business Impact

Musk's platform is a work tool for many people. The ease of access with a single “tweet” makes the social network play an important role in the dissemination of news, for example. Caio Miachon Tenorio, a digital law specialist, warns that the suspension of X could have repercussions on the economy (via CNN):

“…Blocking a platform like X could create a domino effect, affecting other areas of the economy that depend on digital interactions, damaging companies’ confidence in the Brazilian regulatory environment”.

Several brands depend on X for advertising. In addition, the economic issue involves a bigger problem according to the expert, who points to a possible “boycott” of foreign investors due to legal uncertainty (via CNN):

“Brazil can be seen as a hostile market for new businesses, especially in the technology sector, where freedom of operation and regulatory stability are essential.”

It is worth noting that a better idea of ​​the situation will only be possible over time, depending on the length of the restriction and your perception.

_{Social Network adopted the name “X” since Musk's purchase (Photo: reproduction/Alexander Shatov/Unplash)}

Starlink is also a target

Musk's company, Starlink, is managed by SpaceX and provides low-cost internet through satellites. Due to the imbroglio with the social network, Moraes blocked Starlink's accounts due to the lack of payment of fines imposed on X. The measure could also affect the country's image among investors.

“If Brazil is seen as a country where the government or the Judiciary can directly interfere in the functioning of digital platforms through provisional protection, the deterrent effect could be great, leading to capital flight and a reduction in new investments”explained Caio Tenorio (via CNN).

With the request to unblock assets denied on Friday (30), the company appealed against the decision on Monday (2).

Featured Photo: Former Twitter, X is suspended in Brazil (Reproduction/kellysikkema/Unplash)