Hong Kong Singularity Finance reported on September 20. On Thursday (September 19), the Brazilian Supreme Court issued a statement announcing sanctions on Elon Musk's social media X, which will face a huge fine of up to 5 million Brazilian reals (about 920,000 US dollars) per day for allegedly circumventing the Brazilian government's ban on the service. In addition, the court also announced further regulatory measures for "joint liability" for Starlink, a satellite Internet service under Musk's aerospace company SpaceX.

Earlier this month, Brazilian Chief Justice Alexandre de Moraes ordered the suspension of X's operations in Brazil at the end of August based on X's violations of Brazilian law, especially pointing out that under Musk's management, X failed to meet the Brazilian law's requirements for social media companies to establish legal representatives and effectively clean up harmful content, and failed to promptly suspend accounts suspected of violating the privacy of federal officials. The decision was subsequently supported by a panel of judges.

However, this week, some Brazilians briefly regained access to X. According to the Brazilian Association of Internet and Telecommunications Providers (ABRINT), X made a "significant" update early on September 18, changing its design to use IP addresses associated with Cloudflare and bypass the service provider's blockade. ABRINT said the update put the provider in a "delicate situation."

Subsequently, the Brazilian government took action to deduct the corresponding fines from X and Starlink's accounts in Brazilian financial institutions. The new fines will take effect on September 19 and will be accumulated based on the number of days that X "does not comply" with the ban.

In response, a spokesperson for X responded: "When X encountered service shutdowns in Brazil, we were forced to suspend the infrastructure that originally served Latin America. In order to continue to provide high-quality services to users around the world, we have decided to change network service providers. This adjustment unexpectedly led to a brief restoration of service for Brazilian users." X also said that it will continue to work hard with the Brazilian government and expects the blockade to be restored soon.

According to CNBC, Musk himself was highly critical of Justice Moraes' decision, and repeatedly criticized him in public, even using extreme metaphors to describe him and calling for his impeachment. Musk's public statements are also full of strong confrontational colors. According to The Verge, in recent weeks, he has frequently criticized the ruling of the Brazilian Supreme Court and the current president, insisting that the ban violates the principle of freedom of speech and worrying that it may set a dangerous precedent for restricting freedom of expression. Musk has also won widespread support, especially from the strong support of far-right influencers and politicians.

In fact, the prelude to this storm was opened in April 2024, when Musk triggered a dispute due to a public government information request, and then lifted the access restrictions on specific personal data on the X platform according to the Brazilian court order. In response, Judge Moraes not only included Musk in the investigation of organized political fraud, but also subpoenaed X's Brazilian legal representative. Faced with such pressure, Musk decided to close the relevant business in Brazil, but this move unexpectedly led to further bans on the grounds of violating local laws.

As time went on, the pace of the two sides seeking a solution through negotiations gradually accelerated. The Brazilian Supreme Court announced an important move to transfer X and Starlink's 18.3 million reais in Brazil to the national treasury as an indirect fine for failing to fulfill the obligation to delete content. Subsequently, Judge Moraes responded positively and lifted the freeze on the bank accounts of the two companies.

However, although Musk often regards himself as a defender of free speech, X has repeatedly deleted harmful content or personal accounts at the request of governments around the world, including India, Turkey and Hungary. Brazilian media Correio Braziliense pointed out that a service under X has also followed the suspension order of the Brazilian Supreme Court and blocked some accounts, including the accounts of Internet celebrities under investigation for spreading false information and inciting attacks on Brazilian democratic institutions.

Musk's recent series of actions also seem to indicate a easing of the situation: he not only met with Brazilian Internet law expert Vanessa Souza, but also formally appointed two lawyers to be responsible for X's business operations in Brazil. This move prompted Judge Moraes to ask whether X has resumed operations, which may indicate that the dawn of a full lifting of the ban has appeared.