Musk's X to resume operations

X, owned by Elon Musk, was shut down in Brazil on August 30. In this country of 213 million people, X's user base was estimated to be between 20 and 40 million, and Brazil was considered one of the platform's largest markets.

Justice de Moraes had issued the shutdown order following months of tension with Musk over freedom of speech, far-right accounts, and misinformation. Musk had criticized de Moraes, describing him as authoritarian and a censor, and had dismissed the shutdown order.

Despite Musk's harsh criticism, the X platform ultimately complied with all of de Moraes' demands by blocking specific accounts from the platform, paying outstanding fines, and appointing a legal representative in the country. The appointment of a legal representative was a critical step for the platform to resume operations in Brazil, as this deficiency was one of the primary reasons for the suspension order.

In the court document, de Moraes stated, "The resumption of X's activities on national territory is conditional upon full compliance with Brazilian law and absolute adherence to the Judiciary's decisions."

THE LEGAL REPRESENTATIVE ISSUE

X's legal representative in Brazil, Rachel de Oliveira Villa Nova Conceição, had faced the threat of arrest in the event of non-compliance with court orders. Conceição attempted to minimize this risk by signing a representation agreement stating that she must receive written instructions before assuming the company's potential legal liabilities.

Conceição works for BR4Business, a business services firm. The two-page website for BR4Business contains no information about the company's operations or staff, and the homepage features the phrase "Something great is on the way." It was reported that the company's offices in Sao Paulo are empty and that employees work remotely.

Fabio de Sa e Silva, a professor of International and Brazilian Studies at the University of Oklahoma, stated that using such a company as a legal representative is not illegal, but it shows that X's presence in Brazil is being kept to a minimum. Silva noted that other major tech firms interact more effectively with public authorities in Brazil.

COMPETITION AND MARKET SHIFT

When the X platform was shut down in Brazil, many users turned to alternative platforms such as Meta's Threads and, in particular, Bluesky. Bluesky announced that it had seen a strong increase in its user count in Brazil and that it had appointed a legal representative in the country. These developments appear likely to make it difficult for X to maintain its competitive edge in the Brazilian market.

News Source: İHA