In a dramatic turn of events, Brazil's supreme court has issued a nationwide suspension of Elon Musk's social network X after the company's refusal to comply with earlier court orders. The court's announcement on Wednesday stipulated that Musk and X Corp. had a 24-hour deadline to appoint a legal representative for their business in Brazil or face the penalty of suspension of activities within the country.

Alexandre de Moraes, the court's top judge, has also initiated measures to tackle the usage of virtual private networks (VPNs) and other methods employed by individuals or businesses in Brazil to access X while the platform remains banned in the country. G1 Globo reported that de Moraes has further authorized daily fines for those who disregard the ban.

Through a statement released on its government website, Brazil's supreme court declared its decision to order "the immediate and complete suspension of the operation of X, formerly Twitter, throughout the national territory until the Court's judicial decisions are complied with and the fines applied are paid." The court emphasized that this order will remain in effect until X appoints a representative in Brazil.

The deadline set by the court passed on Thursday evening with no compliance from X. The global government affairs unit of X responded on Thursday, stating that they anticipated the shutdown by de Moraes would occur "soon." The company added that it would not adhere to the court's orders.

Notably, Brazil requires social media companies operating within its borders to have a representative responsible for handling government takedown notices, especially those related to political misinformation and incitement of violence. X currently lacks such a representative and announced earlier this month that it would withdraw its employees from Brazil rather than risk arrests due to non-compliance with court orders.

The suspension of X in Brazil poses potential business challenges for Elon Musk's company, which is already grappling with various ongoing issues. Brazil boasts over 171 million active social media users, making it a crucial market for the platform. Musk had spearheaded the $44 billion acquisition of Twitter in late 2022, implementing significant changes that led to several major advertisers reducing or halting their ad campaigns due to concerns over content moderation.

The World Bank, for instance, ceased paying for campaigns on X after a CBS News investigation uncovered instances of ads appearing alongside racist content posted by an X account that promoted "pro-Nazi and white nationalist" content.

Tensions between Musk and de Moraes escalated following the court's freezing of the finances of Starlink, Musk's SpaceX satellite internet service in Brazil. Starlink had been advertised on X under Musk's management, and he encouraged users in Brazil to access the social media platform through Starlink. In response, Musk took to X to criticize de Moraes, comparing him to the villain Voldemort and denouncing the court's orders as censorship.

As news of the suspension broke, X released a statement on Thursday accusing de Moraes of taking "illegal actions" against the company. Musk echoed these sentiments on X, stating, "The oppressive regime in Brazil is so afraid of the people learning the truth that they will bankrupt anyone who tries."

G1 Globo, a prominent national news organization in Brazil, reported that the supreme court forwarded its orders to the country's telecommunications agency, Anatel, on Friday. Anatel has since instructed telecommunications providers, including Starlink, to block access to X within Brazil.

Representatives for X and the U.S. embassy in Brazil have not yet commented on the recent developments. It remains to be seen how this suspension will impact the future of X and Elon Musk's ventures in Brazil.