Though it did help Musk underline an ideological point, it seems that the company is going to have to pay the price for Elon Musk's decision to oppose a Brazilian court order.
Last week, Musk and X relented to demands by Brazil's Government to block some accounts on the application following a long-standing protest against the move, the company arguing first that it wasn't lawful in light of freedom of speech provisions for users. In that battle, Musk even went ahead to attack Brazilian leadership as he aimed at responding to an appeal by Brazilian Supreme Court Minister Alexandre de Moraes over what he claims have been repeated illegal demands from the Brazilian court.
The Brazilian Government requests refer to ongoing speculation suggesting that the 2022 Brazil election was "stolen," which has been disproven by all investigations of the poll. However, Musk, who is an ally of exiled President Jair Bolsonaro, does not believe that such claims have merits to be censored.
But now, even though X is still prohibited in Brazil for several weeks now, the company will still follow the court's orders to do so, while it has also appointed a local representative, according to its operational necessities.
However, regardless of this, X would still have to pay the already accumulated fines before it could be reinstated in the region.
Reuters reported:
Brazil's Supreme Court said on Friday that social platform X still needs to pay more than $5 million in pending fines, including a new one, before it will allow the service to be resumed in the country, according to a court document.
The new fine pertains to X apparently having established a work-around to enable X's entry into Brazil, in spite of the latter having been categorically banned. This was rectified quite promptly, but the court still pursued with intent to impose the fine as originally intended for X's violation.
So X will have to dig $5 million out of its pocket to pay in fines, and when you add that onto the ad dollars that the company has lost too due to the ban, it's a pretty big hit for the financially struggling company, and quite a bit for Musk to swallow, purely as a statement piece.
Does that mean that X should have just folded and followed along from the get-go, and avoided the fine?
Well, it depends on how you think of it. If it really comes down to Musk and his team considering that they are at the right place, and that any demands such as these against Brazilian law, as well as X's "free speech" ideology, then maybe it is worth standing for them as a way of underpinning those principles and to show it to the users of X. It's an expensive ploy, but Musk is, after all very rich. And as he's mentioned more times than words can count, money isn't the motivator for his work at X.
If that be the case, it is Elon's choice what issues he will make a point on although is somewhat interesting that he has made an exception to some Brazilian requests, but done as asked by others in other countries.
Why is X giving in to some Government demands and not others?
And now that is probably the greater question at stake in the larger X project.