Brazil's Supreme Court has fined Elon Musk‘s social media platform nearly $1 million daily for allowing access to X, despite a ban.

What Happened: The court accused Musk of switching X's network provider to partially restore access. This maneuver was seen as an attempt to bypass the ban imposed three weeks ago, reported The Wall Street Journal.

In his latest ruling on Thursday, Justice Alexander de Moraes ordered X to immediately block user access to the platform in Brazil due to the network switch, or face a daily fine of approximately $921,000. The Brazilian judge described the crackdown on X as part of broader efforts to “clean up the internet.”

X stated it had no intention of evading the ban. The company claimed it was forced to switch providers after shutting down its Brazilian operations, which inadvertently restored service temporarily. However, de Moraes cited Musk's cryptic post on X as a "confession" of deliberate circumvention.

De Moraes initially banned X on Aug. 30 for failing to block accounts spreading misinformation and hate speech. He emphasized the crackdown as part of efforts to "clean up the internet" and protect democracy, following violent attacks on Brazil's capital last year.

Brazil's telecom regulator, Anatel, accused Musk of intentionally defying the court order. They are working with Cloudflare to find a solution to enforce the ban without disrupting other services, according to the report.

See Also: Former Tesla Exec Says Elon Musk’s Endorsement Of Trump Might Not Sway Upcoming Presidential Elections: ‘Last Time Around He Endorsed Andrew Yang’

Why It Matters: The conflict between Musk and Brazil’s government has broader implications. On Thursday, the Brazilian Association of Internet and Telecommunications Providers reported that X managed to dodge the ban using an automatic software update, complicating efforts to block the platform. This maneuver has raised questions about the effectiveness of Brazil’s regulatory measures.

Earlier in the month, FCC Commissioner Brendan Carr criticized Brazil’s actions, warning that such punitive measures could make Brazil an “uninvestable market.” Carr’s comments reflect growing concerns among U.S. business leaders about the stability of Brazil’s regulatory environment.

The situation has also affected Musk’s other ventures. On Sept. 5, SpaceX evacuated employees from Brazil and halted travel to the country amid the legal battle. This move underscores the broader impact of the dispute on Musk’s business operations.

Moreover, experts warned that the standoff could affect other Musk ventures like SpaceX and Tesla Inc. Tim Higgins noted that the ban on X could jeopardize Musk’s business opportunities in Brazil, particularly in rural areas where his ventures have been successful.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote