On Monday, September 2, tensions heightened between Brazil and Elon Musk’s business ventures as the nation’s telecommunications regulator indicated potential sanctions against his satellite broadband service, Starlink.

This development followed the Supreme Court's endorsement of a contentious ruling that prohibited Musk's social media platform, X, from operating within Brazil.

The court determined that the platform facilitated the dissemination of hate speech and misinformation regarding Brazil’s electronic voting system, thereby threatening the integrity of the nation’s democracy.

Brazilian President Luiz Inacio Lula da Silva remarked to CNN Brasil, "The Brazilian judiciary may have sent a significant message that the world is not obligated to tolerate Musk's far-right ideology simply due to his wealth."

In retaliation to a judicial decision that froze Starlink’s accounts to cover potential fines related to X, Musk hinted at possible asset seizures in Brazil, though he did not elaborate on the specifics.

Starlink faced further scrutiny from Brazilian authorities after it declined to adhere to a directive requiring all internet service providers to block access to X domestically.

This prompted the telecommunications regulator, Anatel, to warn of sanctions for noncompliance, which could include the revocation of Starlink's operating license.

Anatel is currently reviewing all telecom operators for adherence, with Starlink being the sole entity not in compliance. The company did not provide an immediate response to inquiries on Monday.

Earlier, the Supreme Court unanimously upheld the suspension of X for its failure to designate a local legal representative.

With 21.5 million users, Brazil ranks as the sixth-largest market for the social network.