The Supreme Court in Brazil has upheld a ban on Elon Musk’s social media platform X, formerly known as Twitter, in a shockwave being sent throughout the tech world.
Five justices have rendered their judgment unanimously in relation to Musk refusing to comply with laws in the land – more specifically, the need to appoint a legal representative in Brazil.
This ban does not only affect Musk’s operations but also most seriously calls into question free speech and the roles of foreign entities in local jurisdictions.
Elon Musk: Legal Tussle
The fight between Musk and the Brazilian authorities has been ongoing for months, but it took a new turn when Justice Alexandre de Moraes ordered the social media platform X to take down accounts accused of spreading misinformation and hate speech.
Free speech is the bedrock of democracy and an unelected pseudo-judge in Brazil is destroying it for political purposes https://t.co/eqbowALCeu
— Elon Musk (@elonmusk) August 30, 2024
When Musk’s platform did not comply with the court-ordered deadline for the naming of a representative in the country, it was the turn of the Supreme Court to intervene.
Moraes added that the “obvious” disrespect by Musk over the Brazilian legislation just goes to show how the billionaire thinks that he is “above the law.”
Moraes said:
“An entity that knowingly violates court decisions seems to place itself above the law. This may eventually turn it into an outlaw.”
The ban, which took effect over the weekend, dramatically jeopardizes the operations of X in Brazil, where it has approximately 40 million users.
A decision by the court required all telecom providers in Brazil to stop operations of X until the platform complies with the law.
Furthermore, any person using the platform through VPN faces a hefty fine of up to 50,000 reais, or about $9,000, per day.
Billionaire’s Reaction
Musk has not taken the ruling lying down. He took to X to lash out at the Brazilian Supreme Court and its justice, labeling Moraes a “dictator” and saying the ban was an attack on free speech.
SpaceX and X are two completely different companies with different shareholders. I own about 40% of SpaceX, so this absolutely illegal action by the dictator @alexandre improperly punishes other shareholders and the people of Brazil. https://t.co/zIzcT0BTJl
— Elon Musk (@elonmusk) August 29, 2024
In one thread, Musk termed Moraes “Brazil’s Voldemort,” dead-set that the ban would not prevent the Brazilian people from finding out about his “illegal, shameful & hypocritical actions.”
His response, however, underlines the tension between his vision for free expression and the attempts by the Brazilian government to regulate online content.
Wider Implications
The development has broader implications for how social media companies operate in overseas markets.
Brazil’s ban uphold directly points to worries over misinformation and the accountability of companies before local legislation.
Dogecoin market cap currently at $14.4 billion. Chart: TradingView.com
Justice Flávio Dino emphasized that one does not get immunity because of wealth and influence, warning against “private autocrats” who may dictate regulations on social media platforms.
Impact On Dogecoin Price
The possible banning of X, formerly Twitter, in Brazil raises a very serious implication for the price action of DOGE, whose cryptocurrency community relies heavily on the social platform for real-time market updates and discussion.
DOGE down in the last week. Source: Coingecko
Since X is among the world’s largest platforms for crypto investors, the mere ban of this platform in Brazil has the potential to limit the DOGE enthusiasts in ways that might affect their access to important updates and insight into the cryptocurrency market. Any obstruction in information flow might make DOGE more volatile and spread uncertainty over its price movements.
X has been a platform on which Dogecoin garnered much visibility and support from influential figures such as Elon Musk. The ban could reduce the possibilities of new investors being exposed to DOGE and slow its adoption in Brazil, reducing the growth of the virtual asset’s price in the short term.
At the time of writing, Dogecoin was trading at $0.099, 4.3% in the last 24 hours, but sustained a 6.6% drop in the last week, data from Coingecko shows.
Featured image from Pixabay, chart from TradingView
www.Asciminerbulk.com