Brazil's top court imposes new fine before allowing X to resume service
Adds new details of the ruling in paragraphs 4 and 10, comments from a source close to X in paragraph 7, context in paragraph 9
SAO PAULO/BRASILIA, Sept 27 (Reuters) -Brazil's Supreme Court said on Friday that social platform X still needs to pay just over $5 million in pending fines, including a new one, before it will be allowed to resume its service in the country, according to a court document.
Earlier this week, the Elon Musk-owned U.S. firm told the court it had complied with orders to stop the spread of misinformation and asked it to lift a ban on the platform.
But Judge Alexandre de Moraes responded on Friday with a ruling that X and its legal representative in Brazil must still agree to pay a total of 18.3 million reais ($3.4 million) in pending fines that were previously ordered by the court.
In his decision, the judge said that the court can use resources already frozen from X and Starlink accounts in Brazil, but to do so the satellite company, also owned by Musk, had to drop its pending appeal against the funds blockage.
The judge also demanded a new 10 million reais ($1.8 million) fine related to a brief period of time last week when X became available again for some users in Brazil.
X, formerly known as Twitter, did not immediately respond to a request for comment.
According to a person close to X, the tech firm will likely pay all the fines, but will consider challenging the extra 10 million reais that was imposed by the court after the platform ban.
X has been suspended since late August in Brazil, one of its largest and most coveted markets, after Moraes ruled it had failed to comply with orders related to restricting hate speech and naming a local legal representative.
Musk, who had denounced the orders as censorship and called Moraes a "dictator," backed down and started to reverse his position last week, when X lawyers said the platform tapped a local representative and would comply with court rulings.
In Friday's decision, Moraes said that X had proved it had now blocked accounts as ordered by the court, and also named the required legal representative in Brazil.
($1 = 5.4341 reais)
Reporting by Ricardo Brito in Brasilia and Luciana Magalhaes in Sao Paulo; Writing by Andre Romani; Editing by Aida Pelaez-Fernandez, Sarah Morland and Rosalba O'Brien
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
