Legal - Faz Business | فاز الأعمال

A Texas judge denied Media Matters for America’s request for a dismissal on Thursday allowing X’s lawsuit over alleged anti-semitic and racist content. The Verge reported that Northern District of Texas Judge Reed O’Connor dismissed the request for a dismissal paving the way for X’s lawsuit against Media Matters to continue.

Media Matters submitted its dismissal request in early March on the grounds that X’s case lacked “personal jurisdiction,” an “improper venue” and the “failure to state a claim.” O’Connor dismissed all of those claims, according to court records.

The lawsuit filed last year in federal court seeks damages from the media watchdog group over “maliciously manufactured” images reporting that X’s platform placed Neo-Nazi and white-nationlist content next to advertisers’ images causing advertisers to flee the site. The images Media Matters used weren’t manufactured but X’s claim is that its dogged pursuit of ads’ placement with racist content by using certain accounts to bypass ad filters caused irreparable harm to the social media giant.

X owner Elon Musk’s other companies are located in Texas but aren’t directly connected to the Media Matters lawsuit. X closed its San Francisco offices earlier this month and owner Elon Musk announced in July that X’s headquarters will move to Austin. Tesla moved its headquarters from California to the Lone Star State in 2021 and SpaceX from Delaware earlier this year when a judge threw out a $56 billion pay package from the state.

However, in dismissing the personal jurisdiction argument, O’Connor noted that two of X’s “blue-chip” advertisers like AT&T and Oracle included in Media Matters’ coverage are based in Texas. He cited the landmark 2002 Internet defamation case Revell v. Lidov quoting the 5th Circuit Court of Appeals’ assertion that “if you are going to pick a fight in Texas, it is reasonable to expect that it be settled there.”

Brazilian Supreme Court Justice Alexandre de Moraes has ordered the nation’s internet service providers to block the social media platform X. The New York Times reports that the order stems from owner Elon Musk’s refusal to appoint a legal representative for his case and comply with Moraes’ order to shut down X accounts he deemed as harmful to the democratic process. The order has been published online by Brazilian news site Poder 360.

The justice issued a deadline to telecom companies and tech giants to remove the X from its app stores and platforms. Apple and Google have five days to take down the social media app from its app stores. Brazil’s telecommunication’s agency Anatel has confirmed it has received the order, and ISPs in the country have just 24 hours to comply with the order.

Justice Moraes’ order doesn’t just block the country’s access to X. It also makes it a crime to use the app through a virtual private network (VPN). Anyone caught accessing X with a VPN could face a daily fine of 50,000 Brazilian Real (around $8,900).

Justice Moraes also froze the Brazillian bank accounts of SpaceX’s Starlink internet service provider on Thursday to further pressure Musk to comply with the court’s order. SpaceX, like X, is a private company majority owned by Musk, and X has $3 million in unpaid fines related to its case in the country. The day before, Justice Moraes issued a threat to ban the X platform entirely across Brazil if the social media company did not appoint a legal representative in the country. The deadline passed without any change to the court’s docket so the judge followed through on his promise.

Starlink expressed its disapproval with the order, vowing to fight the ruling. It even threatened to make its services free to customers to subvert the justice’s order.

The legal fight between Justice Moraes and Musk has been fuming for months. The Supreme Court Judge is also Brazil’s electoral authority and has been monitoring and issuing orders to candidates to steer clear of spreading false information through internet and social media channels.

Brazil’s 2022 presidential election between infamous incumbent Jair Bolsonaro and challenger and former President Luiz Inácio Lula da Silva was reportedly filled with attempts to present voters with false information. Justice Moraes was, until recently, president of the nation’s Superior Electoral Court, which gave him the power to order takedowns of content that violated previous court orders. The judge issued a similar block of the messaging app Telegram for failing to freeze offending accounts, which was lifted after compliance.

Musk characterized Moraes’ directives to take down or freeze similar misinformation accounts from X as “censorship orders.” Earlier this month, Musk expressed his continued refusal to comply with the court by closing X’s Brazilian office in order “to protect the safety of our staff.” X’s Global Governments Affairs team also promised to publish all of “Judge de Moraes’ illegal demands and all related court filings.”