Social media platform X, previously known as Twitter, has
found itself in a precarious situation in Brazil after refusing to comply with
Brazilian court orders to remove the accounts of seven anti-government
commentators. The platform claims that it hasn't been provided with sufficient
information to justify taking action against these accounts, leading to a
standoff between X and Brazilian authorities.
The controversy began in April when the Brazilian Supreme
Court ordered X to suppress certain accounts that were allegedly spreading
false reports and hate speech. X, however, refused to comply, stating that the
request was not legal under Brazilian law and did not align with the platform's
new "free speech" moderation approach.
As the case progressed, Brazilian authorities threatened to
arrest local X staff for failing to comply with the court order. In response, X
made the decision to shut down its Brazilian office and evacuate its employees.
The government then demanded that X nominate a legal representative in the
region, but the company did not do so, as the representative would also face
arrest.
Consequently, the entire platform was suspended from
operating in Brazil late last week. The ban includes the removal of the X app
from the App Store and Google Play Store in the country, and the court has
threatened fines of up to $US8,900 per violation for people attempting to
access X via a VPN.
At the heart of the controversy are claims that the 2022
Brazilian election was rigged. Former President Jair Bolsonaro, who lost the
election, alleged that electronic ballot machines had been hacked, leading to
an unjust result. These claims resonated with Bolsonaro's supporters, sparking
protests similar to the January 6th riots in the United States.
The seven X accounts identified in the Brazilian Supreme
Court's request are associated with Bolsonaro's regime and have refused to
accept the results of the 2022 election. The concern is that these accounts are
contributing to ongoing unrest and dissent by perpetuating these claims.
The ban in Brazil has immediate consequences for X,
including the loss of approximately 20 million users and the associated ad
revenue. This reduction in monetizable daily active users, combined with a
reported loss of around 5 million users in Europe this year, represents a
significant blow to the platform.
X's revenue has already taken a hit since Elon Musk's
takeover, with reports suggesting an 83% decline compared to pre-acquisition
levels. While Brazil is a minor market for X overall, the loss of revenue from
the region comes at a time when the company is struggling financially due to
its heavy debt burden.
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