BadHumans
2 hours ago
I mentioned before that I don't agree with how Brazil is going about this situation if you believe Musk's telling of the events but it is also impossible to believe that Musk is some free speech warrior given how readily he complies with the demands of countries like Turkey and India so I'm still trying to understand what exactly is the straw that broke the camel's back for Musk. Was it that he just didn't like his representation being allegedly threatened with jail?
JumpCrisscross
2 hours ago
> I'm still trying to understand what exactly is the straw that broke the camel's back for Musk
Moraes finding Starlink and Twitter under common control, which they technically are, may have been it. The unspoken threat being sanctions on Tesla, Musk’s dominant source of liquidity and a levered position, both for sales and raw materials exports.
More than its direct effects, the contagion risks of that strategy could constrain Musk if e.g. the EU played hardball.
gwern
2 hours ago
Musk has long enjoyed the benefits of treating his empire as a conglomerate, without the costs of things like shared liability, doing things like casually reusing Tesla engineers in Twitter or sending Twitter's GPUs to X.ai, and daring shareholders to do anything about it. Now that he's gone to war with the establishment, he may find that the blind eye turned to these sorts of things in the past is no longer going to be so blind; it's not like that sort of bait-and-switch or diffusion of responsibility is novel, and the legal system is well-equipped to attack it in more criminal settings.
And Moraes seems to be showing that it works: similar to how Musk is deathly silent about the CCP, even Brazil has enough muscle to bring him to heel, so you can bet the EU is watching with great interest indeed.
Picking a fight he couldn't win with Moraes, and showing everyone else the way to deal with him, may turn out to have been his biggest mistake since perhaps signing the iron-clad deal to buy Twitter itself.
cjbgkagh
2 hours ago
AFAIK from friends who have worked for him, he has a habit of quickly firing people who disagree with him which can cause all sorts of problems. No-one left to tell you that something might in fact be a bad idea.
walrus01
2 hours ago
Running a company entirely populated by sycophants and yes-men doesn't seem like a viable long term strategy, but then, I'm no rocket scientist.
JumpCrisscross
2 hours ago
> sending Twitter's GPUs to X.ai, and daring shareholders to do anything about it
Or lenders.
alemanek
2 hours ago
It was actually worse than that. It was Tesla’s GPUs and the board refused to even address it. I was actually a bit surprised that something hasn’t come of that yet.
krona
2 hours ago
X isn't a subsidiary of Starlink (or vice versa) so I genuinely don't understand the 'common control' argument you're making. Then again I'm not a corporate lawyer so what do I know.
It would be like Clayton Homes becoming legally liable for Fruit of the Loom because both are owned by by Berkshire Hathaway. It makes no sense.
JumpCrisscross
2 hours ago
> X isn't a subsidiary of Starlink (or vice versa) so I genuinely don't understand the 'common control' argument
“A ‘controlling financial interest’ is generally defined as ownership of a majority voting interest by one entity, directly or indirectly, of more than 50% of the outstanding voting shares of another entity” [1]. When a person has a controlling financial interest in multiple entities, those entities are under common control. The textbook example is “an individual or enterprise holds more than 50% of the voting ownership interest of each entity” [2].
Musk controls SpaceX [3], which in turn controls Starlink. Musk controls X. X and Starlink are under common control.
Whether that means Starlink is liable for X’s liabilities is a separate question. But it’s precedented in practically every jurisdiction for there to be a point at which entities under common control are jointly liable, at least to the degree to which they’re commonly controlled. (SpaceX’s non-controlling interests may have a separate claim on Musk.)
Side note: the comment I’m responding to doesn’t deserve to be downvoted.
[1] https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/bus...
[2] https://www.fasb.org/page/ShowPdf?path=abs02-5.pdf&title=EIT... § 3(a)
[3] https://www.wsj.com/articles/elon-musks-spacex-stake-moves-l...
krona
2 hours ago
> Whether that means Starlink is liable for X’s liabilities is a separate question.
But that is my question.
JumpCrisscross
2 hours ago
> that is my question
Not a lawyer. But X blew off a court. That’s wilful contempt.
Under U.S. civil securities law, Warren Buffett ordering Clayton Homes to break the law could lead to control person liability [1]. If there were no way to hold Clayton Homes, Berkshire Hathaway or Warren Buffett personally liable, the next step would be enforcement against Fruit of the Loom.
Contempt of court is incredibly serious. Contempt pierces the corporate veil under U.S. law [2]. X acted in blatant contempt of Brazil’s courts. Musk publicly admitted to directing it to. There isn’t a competent jurisdiction, almost to the point of defining competence, in which this wouldn’t pierce the corporate veil.
[1] https://www.skadden.com/-/media/files/publications/2022/11/c...
[2] https://www.floydlaw.com/wp-content/uploads/the-corporation-... Ref. Wilson v. United States
petesergeant
2 hours ago
Note that the judge (de Moraes), not the op, has made this argument, and it is certainly being treated as contentious. In the general case, the judge would need to show that he thought the corporate veil had been pierced here, but who knows what Brazilian law says, or what the Supreme Court will rule.
Discussion: https://www.euronews.com/next/2024/09/04/musks-starlink-u-tu...
acchow
2 hours ago
Elon has been very clear about this: he follows the laws of each country. That is, if the government wants to restrict free speech, they must pass laws (or the equivalent in court) to do so and Twitter will follow their laws.
If their government wants to act in contrast to its own laws, then Elon will fight them.
He’s not trying to uphold some universal free speech liberty.
BadHumans
an hour ago
This doesn't track with how he arbitrarily bans people he doesn't like on Twitter. ElonJet, journalist, and people who campaign for Harris all come to mind. Nothing they did was against the law.
raydev
an hour ago
Did Brazil change its own laws in the last few weeks?
phatfish
an hour ago
A rouge billionaire with a popular social media platform might just be what is needed to get governments to properly regulate these sites that are the modern equivalent old school media companies, but are held to much lower standards.
summerlight
2 hours ago
It's pretty simple; he doesn't really have a chance against strong, authoritarianism governments which doesn't accept any sort of challenges so he typically complies to them without any questions. In Brazil, He initially seem to think that there's a good chance to win if he escalates it to a political fight but now he's slowly realizing that there's no solid political ground for him (especially as a foreigner) when he crossed the line against the Supreme Court, the highest constitutional authority.
hexage1814
an hour ago
>he doesn't really have a chance against strong, authoritarianism governments
I think Musk just realized Brazil was one those governments.
Honestly, to any foreigner wanting to learn what is going in the country, take a look at Glenn Greenwald coverage on Twitter, Gleen lives in Brazil and is one of the few journalists talking about what is happening in the country. The amount of crimes the Supreme Court is committing every single day is unbelievable. There is no due process.
luizfzs
an hour ago
The only democratic way for a foreign agent to meddle in another country's politics is by being elected.
Everything else is just bullshit.
What you are saying is that anyone can buy a media platform, whatever platform it is, and play 'arbiter' of truth? Because that's he is doing. He has no right to defy a judge's ruling. He's not a Brazilian citizen. He has no legal representation there. His company has no legal representation there.
His only standing is his ego, which is pretty fragile, given how much of a cry-baby he is.
tux3
2 hours ago
I think Musk is just selective in the causes he finds himself wanting to be a free speech warrior for.
Free speech for me and mine, all others pay cash
giraffe_lady
2 hours ago
It's because the ones in trouble are right wing extremists. He's extremely consistent in his support and decisions on this.
ivewonyoung
2 hours ago
Not true. He tried hard to protect left wing and left wing extremist free speech too.
"India calls X a 'habitual non-compliant platform'"
https://www.bbc.com/news/world-asia-india-66805347
He got fined by India and lost money for trying to protect anti-right wing free speech.
user
40 minutes ago
andrepd
2 hours ago
> He tried hard to protect left wing and left wing extremist free speech too.
Can you give concrete examples of this?
ripjaygn
2 hours ago
Modi tried to censor left wingers' speech, Twitter refused and sued the Indian government. It's in the linked BBC article.
mdhb
18 minutes ago
I love how you yourself haven’t even read the article. Your timing is all wrong here and your larger point is laughably wrong.
phatfish
39 minutes ago
"The instances cited by the government took place before X was acquired by billionaire Elon Musk in 2022. Under Musk's leadership, the company has complied with takedown orders."
Twitter refused pre-Musk, X doesn't seem to have a problem doing what Modi says as far as I can tell.
ivewonyoung
2 hours ago
> but it is also impossible to believe that Musk is some free speech warrior given how readily he complies with the demands of countries like Turkey and India
He didn't give up readily, those countries passed laws and even then Twitter sued the Indian government.
"India calls X a 'habitual non-compliant platform'" https://www.bbc.com/news/world-asia-india-66805347
People only think he gave up readily in India because of the all the echo chamber comments repeating misinformation to make Musk look bad.
> I'm still trying to understand what exactly is the straw that broke the camel's back for Musk. Was it that he just didn't like his representation being allegedly threatened with jail
He felt that the judge's secret orders weren't lawful in Brazil, unlike in other countries.
user
2 hours ago
ElonChrist
an hour ago
[dead]
loceng
2 hours ago
Have you tried thinking of his actions through a more than black and white perspective, from a military strategic perspective? E.g. Is it better for all Brazilians if there's a platform they are all already organized/organizing on to still have access to it, or none of them have access to it?
mdhb
2 hours ago
Politely… what the hell are you talking about?
You think Twitter is some tool of the revolution of Brazil because they had a legal ruling against Elon. Surely I must be misinterpreting what you’re saying here.
JumpCrisscross
2 hours ago
They’re saying Musk may be acting pragmatically in caving. By standing his ground he denies Brazilians a platform on which to organise.
I think it’s bunk to think Musk cares about ordinary Brazilians. But it’s a coherent argument.