BRASILIA (Reuters) - In a historic ruling, the majority of a five-member panel of Brazil's Supreme Court has upheld Justice Alexandre de Moraes' decision to shut down social media giant X for failing to comply with local regulations.
Justices Flavio Dino and Cristiano Zanin joined forces with Moraes, creating a majority consensus, with Justices Luiz Fux and Carmen Lucia yet to cast their votes.
X, a significant player in the Brazilian market, was swiftly taken offline after Moraes' ruling, which came after the platform missed a crucial deadline to appoint a legal representative in Brazil as mandated by local laws.
Moraes and X's owner, the renowned Elon Musk, have been embroiled in a prolonged dispute, stemming from X's reluctance to block accounts linked to investigations of disseminating fake news and promoting hate speech.
"A company cannot simply operate within a country's borders and dictate its own rules," Justice Dino remarked in support of Moraes' stance.
"By willfully defying court orders, a party risks positioning itself above the law and potentially becoming an outlaw."
Analysis: The Supreme Court's decision to shut down X in Brazil marks a significant development in the ongoing battle between tech giants and regulatory authorities. This ruling underscores the importance of compliance with local laws and regulations, even for global companies like X. Investors should closely monitor the implications of this decision on X's operations and future prospects, as regulatory challenges continue to shape the tech industry landscape.
