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  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

Elon Musk’s Starlink won't block Elon Musk’s X in Brazil, as required by court order

(2024/09/03)


Brazil's Supreme Court has backed an earlier decision to force local carriers to block Elon Musk's social network, X, as the dispute between the billionaire and the South American nation widens.

The lengthy dispute centers on Musk's desire to unblock some X accounts that Brazil's courts have [1]ordered be shut down for allegedly spreading misinformation. Musk – who claims to promote a maximal definition of free speech – has characterized those orders as the act of a malicious rogue judge.

The matter came to a head last week when judge Alexandre de Moraes threatened to block X in the country if the social network did not appoint a compliance officer so that X can answer to local authorities. A deadline for that appointment came and went, and on Saturday night X became unavailable in Brazil.

[2]

X also owes outstanding fines in Brazil, and judge Moraes also made an order to freeze assets owned by Starlink – the satellite broadband service controlled by Musk – so it can make good on those penalties.

[3]

[4]

The president of Brazil's National Telecommunications Agency, Carlos Baigorri, on Sunday [5]told local media X had informed him of its intention to flout the court order.

Baigorri pointed out that cancelling Starlink's operating license is one remedy available to Brazilian authorities.

[6]

That hasn't happened. But a panel of five supreme court justices on Monday upheld judge Moraes's decision and orders to block X.

[7]Musk's X, Media Matters headed to trial

[8]Telegram CEO was 'too free' on content moderation, says Russian minister

[9]Big Tech: Malaysia won't let us set our own rules and that's not fair and makes us grumpy

[10]Under-fire Elon Musk urged to get a grip on X and reality – or resign

Musk's X output has continued to see him label Moraes – and anyone who calls for regulation of social media platforms – an enemy of free speech and/or a communist. In one post he quoted a tweet that labelled Moraes a "criminal."

He also pledged to fight the court order, [11]Xeeting : "Unless the Brazilian government returns the illegally seized property of 𝕏 and SpaceX, we will seek reciprocal seizure of government assets too."

Meanwhile, at another Musk property …

In between all that political Xeeting, Musk revealed that Tesla's AI cluster has come online.

"This weekend, the @xAI team brought our Colossus 100k H100 training cluster online. From start to finish, it was done in 122 days," he [12]Xeeted , before promising it will soon double in size.

"Excellent work by the team, Nvidia and our many partners/suppliers."

It seems only apt to end this story with news of a billionaire bro-fest. Musk's Xeet about the colossus cluster prompted a reply from Michael Dell, who wrote "It's amazing how fast this was done, and it's an honor for @DellTech to be part of this important AI training system. Congrats!" ®

Get our [13]Tech Resources



[1] https://www.theregister.com/2024/04/08/musk_burns_bridges_in_brazil/

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZtbeRqB_RdoT8WhwYRxQ1QAAAYE&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZtbeRqB_RdoT8WhwYRxQ1QAAAYE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZtbeRqB_RdoT8WhwYRxQ1QAAAYE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[5] https://g1.globo.com/politica/politico/noticia/2024/09/01/starlink-informa-ao-presidente-da-anatel-que-nao-vai-cumprir-decisao-de-moraes-sobre-suspensao-do-x.ghtml

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZtbeRqB_RdoT8WhwYRxQ1QAAAYE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://www.theregister.com/2024/08/30/media_matters_elon_musk_x_lawsuit/

[8] https://www.theregister.com/2024/09/02/russias_foreign_minister_claims_telegram/

[9] https://www.theregister.com/2024/08/28/big_tech_wants_to_set_own_rules/

[10] https://www.theregister.com/2024/08/07/elon_musk_chamber_progress/

[11] https://twitter.com/elonmusk/status/1830651223722119223

[12] https://twitter.com/elonmusk/status/1830650370336473253

[13] https://whitepapers.theregister.com/



harrys

arrogant sod ......

noticed hes been getting pudgier with age... hopefully that same arrogance is making him believe he knows more then his doctors :)

He's also developed Trump face

Empire of the Pussycat

Just another spoiled brat.

Re: He's also developed Trump face

Tilda Rice

agreed, Harry does sound like a spoilt brat.

El Duderino

No no... he's building up muscle (muskle?) mass for that cage fight, remember?

NoCoffee

His Mum said he cant fight https://www.dazeddigital.com/life-culture/article/60209/1/elon-musk-s-mum-won-t-let-him-cage-fight-mark-zuckerberg

he just a fat druggy

Anonymous Coward

All the dope smoking gives him the munchies. And explains the drug-addled personality.

b0llchit

...we will seek reciprocal seizure of government assets too.

Ahem,... does he intend to seize the country by force? How delusional can one be?

Anonymous Coward

How delusional can one be?

To be fair, he has given some strong hints.

Dinanziame

How delusional can one be?

I think this comes from owning his own social media network with ass kissers repeating and approving whatever he writes. It must be galling to learn that rules are different outside, in the real world.

Anonymous Coward

Musk fires anyone around him who doesn't agree with him so he lives in some kind of strange bubble detached from facts and real world events.

Spazturtle

SpaceX will sue in a US court to seize Brazilian assets stored in the US and will likely win because it is a separate company to X and there is no legal ground to seize SpaceX property to cover X's debts.

Anonymous Coward

I think you could argue legal grounds. The notion of "piercing the corporate veil" is well-established. If X is >70% owned by Musk and Space X is >50% owned by Musk - as the Internet suggests - and given Musk's public statements of intention to defy the Brazilian justice system, there is an argument that the corporate structure is a fig leaf concealing Musk's personal direction of the companies and that they should therefore be treated as personal assets owned by the shareholders. Personal assets held in company A are not distinguishable from personal assets held in company B.

It's probably a longshot, but it could be enough to keep the legal wheels grinding until long after the case had any relevance.

And while potential-president Trump might be happy with the image of the US sequestrating the assets of foreign governments on behalf of Musk, I can't help feel that it would be a foreign policy challenge.

Felonmarmer

A private company suing a foreign country in a US court to seize assets unrelated to the company due to a disagreement in that foreign country with the company (or part of its overall structure) over a legal decision in that foreign country, the consequence of which are entirely restricted to the company's activities and assets in that foreign country?

You think that sort of thing would pass? Wars have started over less. I know the US thinks their laws apply in all countries, but allowing private companies to do the same is beyond crazy.

tip pc

The US has seized a Venezuelan jet its government use for transporting its leaders around

https://news.sky.com/story/amp/luxury-jet-used-by-venezuelan-president-nicolas-maduro-seized-by-us-officials-13208735

boblongii

It is likely to win simply because it is a US company suing a non-US company in the US. American courts are very jingoistic.

Forum shopping

Flocke Kroes

X is organised under Nevada law with principle offices in California so the obvious forum for a dispute with Brazil would be Fort Worth in Texas, just like Media Matters (Washington DC).

Anonymous Coward

If SpaceX doesn't block X in Brazil when ordered to, then it will have direct legal liability. So, piercing the corporate veil is not going to be needed.

Spazturtle

"then it will have direct legal liability."

Then SpaceX will have liabilities for the fines they receive, but still not for X's debts.

Tantrum boy

Winkypop

Careful there, you don’t want to steal the oxygen from the daily Trump headlines!

Remember, you two idiots are supposed to be a team.

Re: Tantrum boy

Tilda Rice

left brain pillocks arrive on cue to any musk related article. perfect.

nobody cared about him, until he stopped x form being a woke only fest. Now panties are fully bunched up. Proving exaclty why he/it was needed in the first place

Re: Tantrum boy

ICL1900-G3

At least we can spell.

Re: Tantrum boy

Anonymous Coward

And to think that that oxygen could be used to rust some old car bodies or something else beneficial.

"X also owes outstanding fines in Brazil"

Pascal Monett

I wonder in what country Musk does have debts or fines . . .

He seems to accumulate those like kids eat candy.

Musk isn't alone

I ain't Spartacus

Loads of tech companies think Internet = no country can stop me. To be fair quite a lot of people in IT seem to share that view, when it comes to discussions on governments trying to control the internet on these very forums.

The internet is of course global - so in a lot of cases you can get away with ignoring the law in one country. But only successfully if you don't really make any money there. Or I suppose, if you do all your transactions in crypto. And even then, only if the government isn't really motivated to try and stop you - given how often crypto can be traced.

But once you've got money there, the courts can seize it or block payments being made to you.

It's an interesting question whether there should be the legal right to take money from one company for the actions of another - even with a significant co-owner. You'd have to look at Brazillian law to know if that's allowed - him being owner of one and a major shareholder of another. Might give his minority shareholders pause though...

There are ways of getting at governments in international courts - but it's harder. And even if you win, you often get overturned on appeal. Some of the companies that held Argentina's debt (issued under US law) when they defaulted in 2001 kept suing them all over the world. Got an Argentinian Navy training ship seized in Africa, until a higher court in that country ruled it was illegal. They also got interest payments to other US debtors (on bonds that hadn't been defaulted on) siezed to pay their debts - thus causing another default - that one was tied up in NY courts for years - I don't know if they settled, got paid, or gave up. But that's the opposite effect, where governments forget they're only sovereign at home - you can default on all your domestic debt and nobody can do anything - but if you get cheaper debt in foreign jurisdictions you're under that country's law (not your own) and can't default in the same way. When Greece defaulted in the Eurocrisis, the debts under UK law got paid in full.

There was a really determined investor after Russia defaulted in the 90s who tried to get the Russian embassy in Paris (I think he got a lower court order that was overturned) - managed to get various Aeroflot jets grounded with injunctions - though I think he finally lost all those cases too. I seem to remember he even had a go at seizing some MiGs on display at the Paris air show.

Tomorrow, you can be anywhere.