Sep 6, 2024, 8:32 AM
Sep 6, 2024, 8:32 AM

FCC Chief Defends Elon Musk's X And Starlink Amid Brazil's 'Punitive' Actions, Warns Business Leaders Are Questioning About It Becoming An 'Uninvestable Market'

Highlights
  • FCC Commissioner Brendan Carr wrote to Brazil's Anatel regarding the ban on X and the freezing of Starlink's assets.
  • The Brazilian Supreme Court blocked X for failing to comply with legal requirements, leading to Starlink's compliance with a court order.
  • Carr warned that these punitive actions could make Brazil an uninvestable market, shaking confidence in its regulated markets.
Story

On Thursday, FCC Commissioner Brendan Carr addressed the Brazilian telecom regulator Anatel regarding the recent ban on Elon Musk's social media platform X and the freezing of Starlink's assets. Carr criticized the Brazilian government's actions as part of a broader crackdown on free speech, asserting that these measures violate Brazil's own laws. He highlighted the potential negative impact on investor confidence, suggesting that U.S. business leaders are questioning Brazil's market stability and predictability. The Brazilian Supreme Court had previously blocked X for failing to meet legal requirements, including the payment of fines and the appointment of a legal representative in Brazil. In response to a court order, Starlink initially resisted blocking access to X but later complied, leading to the freezing of its bank accounts. This freeze has hindered Starlink's ability to conduct financial transactions and pay fines related to X. Carr condemned the actions taken by Brazil's judiciary, particularly the decision by Judge Alexandre de Moraes to freeze Starlink's assets, emphasizing that Starlink operates as a separate entity with distinct shareholders. He described the decisions as arbitrary and capricious, urging for a meeting with Anatel's President to discuss these issues further. The situation has escalated tensions between the Brazilian government and Musk's companies, with Musk indicating a potential response by seeking the seizure of Brazilian assets. As the conflict unfolds, the implications for free speech and investment in Brazil remain a significant concern for both domestic and international stakeholders.

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