FCC Chief Defends Elon Musk's X And Starlink Amid Brazil's 'Punitive' Actions, Warns Business Leaders Are Questioning About It Becoming An 'Uninvestable Market'

Federal Communications Commission (FCC) Commissioner Brendan Carr said on Thursday that he wrote to Brazil telecom regulator Anatel’s President to address the ban on Elon Musk’s social media platform X and the freezing of Starlink assets.

What Happened: The Brazilian government’s decision pertaining to billionaire entrepreneur Elon Musk’s social media platform X and Starlink are part of a growing crackdown on free speech, Carr said, while adding that the action also violates Brazil’s own laws.

“These punitive actions—backed publicly by the Lula Administration—are already reverberating broadly and shaking confidence in the stability and predictability of Brazil's regulated markets. In fact, U.S. business leaders are now openly questioning whether Brazil is on the path to becoming an uninvestable market,” Carr wrote in his letter addressed to Anatel President Carlos Baigorri.

The FCC Commissioner also condemned the decision of Brazil’s top court judge Alexandre de Moraes to freeze Starlink’s assets over disagreements with the functioning of X, noting that Starlink is a separate company with different shareholders.

The decision to ban X and freeze Starlink assets, Carr said, violates Brazil’s own laws. The FCC Commissioner also termed the decisions as “arbitrary” and “capricious.”

Carr also requested a meeting with Baigorri to address the issues. “If you prefer, I will come to you in Brazil to do so,” the commissioner wrote.

Why It Matters: Last week, the Brazilian Supreme Court blocked X citing its failure to comply with legal requirements, including paying certain fines imposed for failing to obey judicial orders and appointing a legal representative in Brazil.

While SpaceX’s Starlink initially refused to comply with Moraes’ order for all internet providers to block access to X in the country, it later complied.

The Brazilian government also froze Starlink’s bank accounts, preventing it from conducting financial transactions in the country and halting the possibility of it being used to pay X’s fines. Starlink said last week that it is continuing to pursue all “legal avenues” against the freeze on its assets and will try to provide uninterrupted internet services to its users though it cannot receive payments.

Musk himself retorted saying that he would seek the seizure of Brazilian assets in turn, but without detailing how.

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