Elon Musk’s Starlink says it will block X in Brazil to keep satellite internet active

Published

7 months ago

September 3, 2024

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Starlink, the satellite internet service owned and operated by SpaceX, said it will block social network X in Brazil to continue operations there without the threat of losing its license. Elon Musk owns both businesses.

Brazil’s supreme court blocked X in the country after it openly defied the court’s orders and failed to pay fines. X refused requests to suspend accounts posting content that the court alleged harmed democratic institutions in Brazil, which is preparing for municipal elections in October.

The supreme court orders had frozen Starlink’s financial assets in the country to ensure X would pay its penalties. The country’s top justice, Alexandre de Moraes, viewed Musk’s two companies as working in concert.

One takedown request pertained to the account of a senator, Marcos do Val, who is being investigated for possible involvement in plots to stage a coup and to sabotage de Moraes. The social network also refused to appoint a legal representative in the country, a requirement under federal regulations.

De Moraes detractors say he has gone too far in exerting control over speech online and on social networks.

As CNBC has previously reported, Starlink has advertised on X and Musk has encouraged users to access the social network using his satellite internet service.

SpaceX has said it has about 250,000 Starlink customers in Brazil. Its competitors there include Hughesnet, Viasat and Telebras.

The Starlink account on X published the following statement, referring to its decision and de Moraes:

“To our customers in Brazil (who may not be able to read this as a result of X being blocked by @alexandre):

The Starlink team is doing everything possible to keep you connected. Following last week’s order from @alexandre that froze Starlink’s finances and prevents Starlink from conducting financial transactions in Brazil, we immediately initiated legal proceedings in the Brazilian Supreme Court explaining the gross illegality of this order and asking the Court to unfreeze our assets.

Regardless of the illegal treatment of Starlink in freezing of our assets, we are complying with the order to block access to X in Brazil. We continue to pursue all legal avenues, as are others who agree that @alexandre‘s recent orders violate the Brazilian constitution.

Before Starlink agreed to comply with the orders to block X, the telecommunications regulator for Brazil, Anatel, had threatened sanctions against the company.

A public clash between Musk and the current administration in Brazil, a major non-NATO ally of the U.S., has been escalating for months.

Musk recently characterized de Moraes as a “criminal,” comparing him to movie and book villains such as Darth Vader and Voldemort, and has repeatedly called for his impeachment, insisting de Moraes’ orders amount to illegal censorship.

Musk has praised Brazil’s far-right former President Jair Bolsonaro and promised retribution against de Moraes and President Luiz Inacio Lula da Silva.

“Unless the Brazilian government returns the illegally seized property of X and SpaceX, we will seek reciprocal seizure of government assets too,” Musk wrote over the weekend. “Hope Lula enjoys flying commercial.”

In April, Musk wrote “How did @Alexandre de Moraes become the dictator of Brazil? He has Lula on a leash.”

In an interview with CNN Brazil after the court’s orders were unanimously upheld by a panel of five justices, Lula said he hopes the controversy surrounding the suspension of X in his country would show the world “it isn’t obliged to put up with Musk’s far-right free-for-all just because he is rich,” according to a translation from Portuguese to English reported by The Guardian.

Under Lula, Brazil’s environmental authority Ibama seized Starlink terminals used by illegal miners in the Amazon rainforest.

Technology

Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are ‘not good’

Published

3 hours ago

April 4, 2025

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Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are 'not good'

President Trump’s new tariffs on goods that the U.S. imports from over 100 countries will have an effect on consumers, former Microsoft CEO Steve Ballmer told CNBC on Friday. Investors will feel the pain, too.

Microsoft’s stock dropped almost 6% in the past two days, as the Nasdaq wrapped up its worst week in five years.

“As a Microsoft shareholder, this kind of thing is not good,” Ballmer said, in an interview with Andrew Ross Sorkin that was tied to Microsoft’s 50th anniversary celebration. “It creates opportunity to be a serious, long-term player.”

Ballmer was sandwiched in between Microsoft co-founder Bill Gates and current CEO Satya Nadella for the interview.

“I took just enough economics in college — that tariffs are actually going to bring some turmoil,” said Ballmer, who was succeeded by Nadella in 2014. Gates, Microsoft’s first CEO, convinced Ballmer to join the company in 1980.

Gates, Ballmer and Nadella attended proceedings at Microsoft’s Redmond, Washington, campus on Friday to celebrate its first half-century.

Between the tariffs and weak quarterly revenue guidance announced in January, Microsoft’s stock is on track for its fifth straight month of declines, which would be the worst stretch since 2009. But the company remains a leader in the PC operating system and productivity software markets, and its partnership with startup OpenAI has led to gains in cloud computing.

“I think that disruption is very hard on people, and so the decision to do something for which disruption was inevitable, that needs a lot of popular support, and nobody could game theorize exactly who is going to do what in response,” Ballmer said, regarding the tariffs. “So, I think citizens really like stability a lot. And I hope people — individuals who will feel this, because people are feeling it, not just the stock market, people are going to feel it.”

Ballmer, who owns the Los Angeles Clippers, is among Microsoft’s biggest fans. He said he’s the company’s largest investor. In 2014, shortly after he bought the basketball team for $2 billion, he held over 333 million shares of the stock, according to a regulatory filing.

“I’m not going to probably have 50 more years on the planet,” he said. “But whatever minutes I have, I’m gonna be a large Microsoft shareholder.” He said there’s a bright future for computing, storage and intelligence. Microsoft launched the first Azure services while Ballmer was CEO.

Earlier this week Bloomberg reported that Microsoft, which pledged to spend $80 billion on AI-enabled data center infrastructure in the current fiscal year, has stopped discussions or pushed back the opening of facilities in the U.S. and abroad.

JPMorgan Chase’s chief economist, Bruce Kasman, said in a Thursday note that the chance of a global recession will be 60% if Trump’s tariffs kick in as described. His previous estimate was 40%.

“Fifty years from now, or 25 years from now, what is the one thing you can be guaranteed of, is the world needs more compute,” Nadella said. “So I want to keep those two thoughts and then take one step at a time, and then whatever are the geopolitical or economic shifts, we’ll adjust to it.”

Gates, who along with co-founder Paul Allen, sought to build a software company rather than sell both software and hardware, said he wasn’t sure what the economic effects of the tariffs will be. Today, most of Microsoft’s revenue comes from software. It also sells Surface PCs and Xbox consoles.

“So far, it’s just on goods, but you know, will it eventually be on services? Who knows?” said Gates, who reportedly donated around $50 million to a nonprofit that supported Democratic nominee Kamala Harris’ losing campaign.

— CNBC’s Alex Harring contributed to this report.

WATCH: There will be many LLM winners, says infrastructure investor Morrison

Technology

AppLovin can offer TikTok ‘much stronger bid than others,’ CEO says

Published

5 hours ago

April 4, 2025

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AppLovin can offer TikTok 'much stronger bid than others,' CEO says

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AppLovin CEO Adam Foroughi provided more clarity on the ad-tech company’s late-stage effort to acquire TikTok, calling his offer a “much stronger bid than others” on CNBC’s The Exchange Friday afternoon.

Foroughi said the company is proposing a merger between AppLovin and the entire global business of TikTok, characterizing the deal as a “partnership” where the Chinese could participate in the upside while AppLovin would run the app.

“If you pair our algorithm with the TikTok audience, the expansion on that platform for dollars spent will be through the roof,” Foroughi said.

The news comes as President Trump announced he would extend the deadline a second time for TikTok’s Chinese-owned parent company ByteDance to sell the U.S. subsidiary of TikTok to an American buyer or face an effective ban on U.S. app stores. The new deadline is now in June, which, as Foroughi described, “buys more time to put the pieces together” on AppLovin’s bid.

“The president’s a great dealmaker — we’re proposing, essentially an enhancement to the deal that they’ve been working on, but a bigger version of all the deals contemplated,” he added.

AppLovin faces a crowded field of other interested U.S. backers, including Amazon, Oracle, billionaire Frank McCourt and his Project Liberty consortium, and numerous private equity firms. Some proposals reportedly structure the deal to give a U.S. buyer 50% ownership of the company, rather than a complete acquisition. The Chinese government will still need to approve the deal, and AppLovin’s interest in purchasing TikTok in “all markets outside of China” is “preliminary,” according to an April 3 SEC filing.

Correction: A prior version of this story incorrectly characterized China’s ongoing role in TikTok should AppLovin acquire the app.

WATCH: AppLovin CEO Adam Foroughi on its bid to buy TikTok

Technology

Trump’s tariff rates for other countries radically larger than World Trade data

Published

6 hours ago

April 4, 2025

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Trump's tariff rates for other countries radically larger than World Trade data

U.S. President Donald Trump speaks during an event announcing new tariffs in the Rose Garden at the White House in Washington, April 2, 2025.

Chip Somodevilla | Getty Images

President Donald Trump announced an aggressive, far-reaching “reciprocal tariff” policy this week, leaving many economists and U.S. trade partners to question how the White House calculated its rates.

Trump’s plan established a 10% baseline tariff on almost every country, though many nations such as China, Vietnam and Taiwan are subject to much steeper rates. At a ceremony in the Rose Garden on Wednesday, Trump held up a poster board that outlined the tariffs that it claims are “charged” to the U.S., as well as the “discounted” reciprocal tariffs that America would implement in response.

Those reciprocal tariffs are mostly about half of what the Trump administration said each country has charged the U.S. The poster suggests China charges a tariff of 67%, for instance, and that the U.S. will implement a 34% reciprocal tariff in response.

However, a report from the Cato Institute suggests the trade-weighted average tariff rates in most countries are much different than the figures touted by the Trump administration. The report is based on trade-weighted average duty rates from the World Trade Organization in 2023, the most recent year available.

The Cato Institute says the 2023 trade-weighted average tariff rate from China was 3%. Similarly, the administration says the EU charges the U.S. a tariff of 39%, while the 2023 trade-weighted average tariff rate was 2.7%, according to the report.

In India, the Trump administration claims that a 52% tariff is charged against the U.S., but Cato found that the 2023 trade-weighted average tariff rate was 12%.

Many users on social media this week were quick to notice that the U.S. appeared to have divided the trade deficit by imports from a given country to arrive at tariff rates for individual countries. It’s an unusual approach, as it suggests that the U.S. factored in the trade deficit in goods but ignored trade in services.

The Office of the U.S. Trade Representative briefly explained its approach in a release, and stated that computing the combined effects of tariff, regulatory, tax and other policies in various countries “can be proxied by computing the tariff level consistent with driving bilateral trade deficits to zero.”

“If trade deficits are persistent because of tariff and non-tariff policies and fundamentals, then the tariff rate consistent with offsetting these policies and fundamentals is reciprocal and fair,” the USTR said in the release.