X Announces Closure of Business Operations in Brazil Amid Legal Dispute

X, the social networking platform formerly known as Twitter, has announced the shutdown of its business operations in Brazil. Despite this decision, the platform will remain accessible to users in the country.

This move comes during a tense legal battle with Brazil's Supreme Court Justice Alexandre de Moraes, who has sought to suspend certain user accounts on X, accusing them of spreading misinformation about elections and operating so-called "digital militias."

The situation escalated when X revealed via its global government affairs channel that Justice Moraes had threatened to imprison the company's legal representative in Brazil for not complying with demands to censor specific content on the platform.

In response, X stated, "Given the current circumstances that threaten the safety of our personnel, we have decided to immediately cease our business operations in Brazil. However, the X platform will continue to be available to users in Brazil."

Previously, X had disclosed a list of accounts facing potential suspension, including those of a clergy member, a current member of Parliament, and the spouse of a former Parliamentarian.

At the beginning of the year, Justice Moraes initiated a criminal investigation targeting Elon Musk, following Musk’s acquisition of X and his subsequent declaration to countermand a judicial directive by removing restrictions on certain accounts. Subsequently, X appeared to backtrack, indicating that it would, in fact, comply with the order to block the accounts.

The actions of Justice Moraes have drawn criticism from supporters of Jair Bolsonaro, Brazil’s ex-president known for his far-right political stance. These supporters have called for Moraes’ impeachment. Bolsonaro, who was defeated in the 2022 elections, has been barred by Brazil’s Superior Electoral Court from running for public office for a duration of eight years. The court’s decision was based on allegations that Bolsonaro attempted to destabilise the electoral process by propagating claims of electoral fraud.

Generally, X’s advertising revenue dropped 24%. The Elon Musk-helmed social media platform took a big hit over the last year as advertisers fled the site.