Starlink in Brazil's crosshairs as spat over Elon Musk's X escalates

Brazil's telecommunications regulator threatened sanctions against Elon Musk's satellite internet firm Starlink, as a public confrontation with the billionaire escalates over the country's decision to block his social media company X.

Last week, Brazil's supreme court ordered a nationwide suspension of X for not appointing a legal representative by a court-mandated deadline, in line with the country's laws. That ruling was upheld Monday by a panel of federal supreme court justices.

Anatel, Brazil's telecommunications regulator, has instructed internet providers to block access to X following the court order. Artur Coimbra, a commissioner at Anatel, told Reuters that Starlink is the only company that has told the regulator that it would not comply with the court decision.

In a separate interview with CNN Brasil on Monday, Coimbra said Anatel is looking into the potential noncompliance of Starlink and other network operators. The commissioner said there are a number of sanctions that could be imposed on a company if it does not comply with the court order to block X, including fines and the withdrawal of the license to do business in Brazil.

CNBC has reached out to Anatel and SpaceX, which runs Starlink, for comment.

Musk's fight with Brazil stems back to April, when an X representative said that the company was forced by "court decisions to block certain popular accounts." Shortly after, Musk said that restrictions were removed and urged users to download a virtual private network (VPN) to access X, in the case that the social network gets banned.

The conflict ramped up just as Brazil prepares for municipal elections in October. Under the country's laws, social networks have to employ someone who can receive and consider