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Judge's order comes after key legal deadline expires

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Telecoms regulator says it is proceeding with compliance

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Saga stems from dispute over regulating online speech

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X, formerly Twitter, still accessible as of Friday evening

(Recasts with regulator statement, adds Musk comment in

paragraph 4, details on Google and Apple ( AAPL ) in paragraphs 12-13,

Starlink request dismissed paragraph 19)

By Lisandra Paraguassu, Luana Maria Benedito and Ricardo

Brito

SAO PAULO/BRASILIA, Aug 30 (Reuters) - Brazil's

telecommunications regulator said on Friday it was proceeding to

suspend access to Elon Musk's X social network in the country in

compliance with an order from a judge who has been locked in a

months-long feud with the billionaire investor.

The move followed the expiry of a court-imposed deadline

for the popular social media platform to name a legal

representative in Brazil.

Musk has argued that Supreme Court justice Alexandre de

Moraes is trying to enforce unjustified censorship, while the

judge has insisted that social media needs hate speech

regulations.

"They're shutting down the #1 source of truth in

Brazil," Musk said in a post on X on Friday.

X remained accessible in Brazil on Friday evening.

The feud has also led to the freezing earlier this week of

satellite internet provider Starlink's bank accounts in Brazil.

Starlink is a unit of Musk-led rocket company SpaceX.

In his ruling, Moraes ordered that X, formerly Twitter, be

suspended in Brazil until all related court orders were complied

with, including the payment of more than $3 million in fines, as

well as the designation of a local representative, as required

by Brazilian law.

Moraes also ordered telecommunications regulator Anatel to

implement the suspension order.

The agency told Reuters it is proceeding with compliance,

but without specifying a timetable.

To effectively close X in Brazil, telecommunication

companies will need to stop carrying the network's traffic,

while also preventing users of the site from dodging it by

concealing their locations with virtual private networks, or

VPNs.

Moraes further ordered that those who continued to access X

via VPNs be fined up to 50,000 reais, or about $9,000, per day.

Tech giants Apple ( AAPL ) and Alphabet's Google

were also initially instructed in the order to remove the X app

from their app stores. Both companies were also ordered to

implement so-called anti-VPN obstacles that would make it more

difficult for users of Apple's ( AAPL ) iOS operating system and Google's

Android to open the X app on phones or tablets.

But Moraes later reversed that part of his order, saying it

would not be needed.

Press offices for both Apple ( AAPL ) and Google declined to

comment.

LAPDOGS AND DICTATORS?

Unlike in many other countries, Brazil's Supreme Court

judges are able to exercise sweeping powers to make unilateral

decisions. But in the dispute over X, Moraes has been backed by

a majority of the 11-member court, including Chief Justice

Roberto Barroso.

The dispute has its roots in a Moraes order from earlier

this year that required X to block accounts implicated in probes

of alleged spreading of distorted news and hate.

Musk denounced the order as censorship. He responded by

closing the company's offices in Brazil but ensured the platform

was still available in the country.

He has said that Starlink will continue to serve

Brazilians, including the military, for free "until this matter

is resolved."

Earlier on Friday, Starlink asked the Supreme Court to

suspend its decision to freeze its local bank accounts, arguing

it has complied with all judicial orders. That request was

dismissed on Friday evening.

Asked to comment, Brazil's President Luiz Inacio Lula da

Silva insisted that all businesses operating in the country must

comply with their legal obligations.

"Just because a guy has a lot of money doesn't mean he can

disrespect (the law)," the leftist leader told local radio on

Friday.

Musk derided the president as Moraes' "lapdog" in a

Thursday post in which he also called the judge a "dictator."

At an event on Friday, Moraes showed no signs of backing

down.

"Those who violate democracy, who violate fundamental

human rights, whether in person or through social media, must be

held accountable," he said.

($1 = 5.6121 reais)