Brazil Freezes Starlink Finances; Musk Gives Free Service Amid Dispute

Starlink august 2024

Brazil’s Supreme Court has ordered a freeze on Starlink’s finances, preventing the company from conducting financial transactions in the country, according to a statement posted by Starlink on X on August 29.

The order was issued by Supreme Court Justice Alexandre de Moraes, who determined that Starlink should be held responsible for fines levied against X, a move Starlink called unconstitutional and lacking due process.

In response, Elon Musk announced that SpaceX would continue providing Starlink’s internet service in Brazil for free until the dispute is resolved. “Many remote schools and hospitals depend on SpaceX’s Starlink! SpaceX will provide Internet service to users in Brazil for free until this matter is resolved, as we cannot receive payment, but don’t want to cut anyone off,” Musk stated.

X has been ordered by Brazil’s Supreme Court to appoint a new legal representative within 24 hours or risk being shut down, following the withdrawal of its previous representative due to threats of arrest from Justice Alexandre de Moraes. Brazilian law mandates that foreign companies must maintain local legal representation to operate, ensuring compliance with legal actions and court notifications, according to the court’s press office.

Looks like Brazil’s fight with X and Musk has spilled over to SpaceX and Starlink. Back in May 2022, Musk visited Brazil for the launch of Starlink. That relationship has now soured.

Starlink currently connects over 250,000 customers across Brazil, including small businesses, schools, and first responders. The company emphasized its commitment to keeping these services operational despite the financial freeze and vowed to address the legal matter.