SpaceX Defends Starlink Amid Brazilian Dispute

SpaceX President urges Brazilian judge to stop targeting Starlink amid X-Brazil legal battle

Musk has been embroiled in a months-long dispute with the Brazilian courts, which have been conducting a campaign against X for harboring accounts that the courts allege disseminate extremism and misinformation.

Last month, Supreme Court Justice Alexandre de Moraes ordered the immediate, nationwide suspension of the platform after X refused to comply with court orders requesting the removal of specific accounts. The prohibition, supported by Brazil’s President Luiz Inacio Lula da Silva, was unanimously upheld earlier this week.

However, the dispute has extended to Musk’s other enterprises, particularly SpaceX, which distributes its satellite internet service, Starlink, nationwide. Local media reported that Brazil promptly froze Starlink’s company accounts to ensure that the company would pay the over $3 million in fines it owes Brazilian courts, following the prohibition on X.

The order is directed explicitly at Starlink Brazil Holding Ltda and Starlink Brazil Servicos de Internet Ltda, providing internet access to approximately 250,000 clients within the country since January 2022. Most of those clients are situated in regions of the country that are not adequately served by conventional telecommunications infrastructure. This probably is one of the most significant markets for Starlink outside of North America.

SpaceX did not immediately respond to TechCrunch’s request for comment.

The court also issued an order to Starlink, which required the company to block access to X. Initially, the company stated that it would not comply with the order; however, it later reversed course and stated that it would comply with the order.

Last month, Starlink stated on X that the order freezing its assets is “based on an unfounded determination that Starlink should be responsible for the fines levied—unconstitutionally—against X…” Starlink announced in a separate post on September 3 that it had initiated legal proceedings in Brazil to challenge the order.

“We are adhering to the order to restrict access to X in Brazil, despite the illegal treatment of Starlink in freezing our assets,” it stated.

SpaceX subsequently issued a company-wide communication to its employees, cautioning them against traveling to Brazil, regardless of personal reasons. Additionally, a small group of SpaceX employees who are situated in Brazil are being relocated by the organization. The Wall Street Journal was the first to report on the correspondence and relocations. Shotwell’s communication is the most recent endeavor to address the intricate financial and geopolitical situation.

Political leaders and regulators may have few reservations about issuing penalties against Musk’s various businesses, regardless of whether they are the subject of a dispute, as evidenced by the entanglement of Starlink in the conflict.