SpaceX took measures to evacuate employees from Brazil and warned people against traveling to this country – the confrontation between Elon Musk and the Supreme Court of Brazil over the social network X owned by the businessman is having an increasing impact on his other enterprises.
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In an email late last week, SpaceX President Gwynne Shotwell advised her subordinates not to travel to Brazil for vacation or work, The Wall Street Journal has learned. The company has also taken steps to move a small group of its non-local employees out of Brazil. Musk’s conflict with the judge of the Supreme Court of Brazil, Alexandre de Moraes, has been going on for several months – the official ordered the administration of social network X to delete a number of accounts that, in his opinion, are spreading hatred and misinformation on the platform. In August, the social network stopped operating its representative office in Brazil, explaining this measure by the need to ensure the safety of its staff.
Last week, the court blocked X and said it would reverse the decision only when the platform complies with its demands: pay a fine and appoint a legal representative in the country. The court also ordered the frozen accounts of satellite provider Starlink (owned by SpaceX) and prohibited it from conducting further financial transactions. The basis for the order was the court’s determination that Starlink should be held liable for the fines imposed on X. Investors pouring into the Brazilian economy recoiled from the move; Local politicians also warned about the dangers of such measures.
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Starlink, however, said it is doing everything it can to keep Brazilian customers connected. The company announced the start of legal proceedings in the Supreme Court of Brazil, calling the ruling against it illegal. At the same time, it agreed to block access to X on its network throughout the country. Starlink’s involvement in the conflict, which initially erupted over Social Network X, illustrates that some officials in different countries do not differentiate between the businesses Musk runs. Starlink is especially vulnerable in this case – the satellite provider is required to obtain permission to provide communication services from the local regulator in each country. As of the end of August, the operator had the right to operate in 105 countries.
In recent years, Starlink has been actively increasing its presence in Brazil, where about 250 thousand customers already use its services. Satellite connectivity is in demand in the country’s agricultural regions and the Amazon rainforest, where terrestrial connections may be unavailable or intermittent. Given Brazil’s large population and many remote areas underserved by terrestrial telecommunications infrastructure, the country is an important market for Starlink. A set of satellite equipment here costs $177, and a monthly subscription fee is $33. SpaceX is also actively concluding agreements to connect enterprises to Starlink – Deere agricultural equipment operating in Brazil and the USA will soon acquire satellite communications.