5 september 2024 : Brazil’s ban on Elon Musk’s social network, X, is unlikely to have a significant impact on the company’s finances, though it affects its user base. Despite Brazil being a major market for user growth and cultural influence, it has historically contributed only a small fraction—about 2%—of X’s overall revenue. In 2021, revenue from Brazil was between $80 million and $100 million.
Musk’s decision to close X’s Brazilian office rather than comply with a judge’s orders to remove certain accounts—alleged to be spreading misinformation and hate speech—likely stems from the relatively minor financial stakes in the region. Following the office closure, X lacked a legal representative in Brazil, which contributed to the Supreme Court’s decision to ban the app.
While the revenue loss from Brazil may be small, the cultural impact and the potential ripple effects on other Musk ventures could be substantial. X, formerly Twitter, has used Brazil to study user behavior and trends, including political and live event discussions. The ban may lead to a loss of influence in the region and give competitors like Bluesky a boost, as evidenced by Bluesky’s surge of over a million new users following the ban.
The ban has also affected other Musk businesses; the same judge froze Starlink’s bank accounts in Brazil, putting pressure on Musk. Starlink eventually agreed to block X, reflecting the broader implications of the legal and business conflicts.
