X faces Brazil ban for non-compliance, Bluesky surges as the alternate

The microblogging site X (formerly Twitter) has been banned in Brazil for refusing to comply with court orders to remove the accounts of seven anti-government commentators. X claims the request could not be justified due to the lack of information provided by the authorities.

In April, Brazil’s Supreme Court ordered X to suppress accounts spreading false reports and hate speech, but X refused, citing the legality of its “free speech” moderation approach. The Brazilian office was shut down, and employees were evacuated after threats of arrest arose for X's employees.

Brazilian authorities demanded that the platform appoint a legal representative, after failing to do so, the platform was suspended from operating in Brazil. With a full ban implemented, the authorities have also instructed the Apple Store to take it down and have issued warnings against anybody attempting to access the app via VPN.

The banned accounts are associated with former President Jair Bolsonaro, who refused to accept the results of the 2022 Brazilian election, claiming it was rigged.

Bolsonaro's supporters staged protests, leading to the attack on Brazil’s Congress, presidential palace, and Supreme Court. This refusal to comply with the Brazilian court’s request has led to the loss of 20 million users, reducing its monetisable daily user count. X’s revenue has reportedly dropped by 83% compared to before Musk’s takeover, with significant losses in the United States.

Although X claims the requests from the Brazilian authorities violate local laws, it has complied with similar requests in Turkey, India, and Germany. Speculation exists that the refusal could be influenced by Musk’s support for Bolsonaro, which also caused him to lose out on business opportunities.

On the other hand, the void has been filled by X’s rival Bluesky, which saw a surge in user activity following the ban. Brazil’s President Luiz Inácio Lula da Silva also moved his social links to Bluesky after the ban on X was implemented.