WhatsApp in Focus as Elon Musk’s X Set to Shut Down in Brazil, Reasons Emerge

WhatsApp in Focus as Elon Musk’s X Set to Shut Down in Brazil, Reasons Emerge

  • Elon Musk has revealed that X, the social media platform, will shut down its operations in Brazil after a prolonged legal tussle
  • The legal dispute centres around Brazil’s Supreme Court Judge asking the platform to remove some accounts accused of spreading misinformation
  • Elon Musk said that despite the loss of revenue, the platform will close its offices in the country but will remain accessible to Brazilians

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Elon Musk, the CEO of X, the microblogging platform, has announced that the company will shut down its operations in Brazil due to a prolonged legal battle with the Brazilian Supreme Court Judge Alexandre de Moraes.

He said that despite the closure, the platform will remain accessible to users from South America.

Elon Musk, Twitter, X, Starlink
CEO of X and Starlink, Elon Musk to shut down social media platform in Brazil Credit: Bloomberg/Contributor
Source: Getty Images

Supreme Court Judge orders removal of accounts

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The dispute concerns de Moraes’ efforts to fight misinformation, which has led to a legal tussle against the platform.

According to reports, X’s Global Government Affairs department accused the Supreme Court Judge of threatening their legal representatives with arrests if the company did not comply with censorship orders.

The firm stated that the office closure was necessary to ensure staff safety and blamed de Moraes for the situation.

Reports say Brazilian Secretary of Digital Policies Joao Brant criticised the social media platform’s decision, warning that it could lead to a potential blocking from the country.

The Supreme Court Judge previously ordered the suspension of several accounts linked to misinformation about the 2022 presidential election.

Musk protests as WhatsApp threatens to leave Nigeria

Musk said complying with the judge’s demands would compromise the platform’s principles.

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The wealthiest man stated that while closure will affect revenue, principles are more important than profit.

The development mirrors the threat by the instant messaging platform WhatsApp to exit Nigeria following a fine of  $220 million slammed on it by the Federal Competition and Consumer Protection Commission (FCCPC).

The FCCPC said the platform harvested the data of Nigerian users without their authorisation.

In response, WhatsApp said it may leave the country as it cannot afford the fine imposed by the FCCPC.

The commission called WhatsApp’s threats diversionary and insisted it breached Nigeria’s data protection laws.

Elon Musk’s Starlink to build ground stations in Nigeria

The development comes amid Elon Musk’s satellite internet company plans to establish ground stations across Nigeria to enhance connectivity.

Reports say the project will span 29,000 acres of land in three Nigerian states.

The stations will be located in Port Harcourt, Lagos, and Ogun.

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Per the report, the satellite internet firm is partnering with Equinix, a leading data centre solutions provider, to build the ground stations.

Equinix entered Nigeria in 2022 after acquiring MainOne at $320 million.

Elon Musk makes total worth of 2 of Nigeria’s richest men in 6 hours

Legit.ng earlier reported that the world's richest man, Elon Musk, has recorded a significant surge in wealth, amassing an amount equal to the combined estimated wealth of Mike Adenuga and Abdulsamad Rabiu, two of Nigeria's wealthiest men.

According to data from the Forbes Billionaire Index, Elon Musk it made $12 billion in 6 hours and 30 minutes of trading on the NASDAQ exchange in the United States on Tuesday, July 2, 2024.

Using the closing dollar exchange rate of N1509.45 means Musk made N18.11 trillion in just hours.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng