Brazil Bans X: A Precedent-Setting Move with Far-Reaching Consequences

In late August, the Brazilian Supreme Court ordered the suspension of X, a social media platform owned by Elon Musk, due to non-compliance with court orders. This decision was the culmination of a months-long dispute, which began in April when Supreme Court Justice Alexandre de Moraes launched an investigation into Musk for spreading defamatory fake news and engaging in obstruction, incitement, and criminal organization. As a result, X closed its Brazilian offices in mid-August and was given a 24-hour ultimatum to appoint a new legal representative. The company failed to comply, and the platform has been inaccessible in Brazil ever since. Prior to the ban, X had a significant user base of 22 million in the Latin American country. Recently, Justice de Moraes confirmed that X still has not met the requirements for lifting the ban, despite appointing a legal representative, and has given the company five days to submit additional documents. This development may potentially lead to the ban being lifted. The ban has had a direct impact on many Brazilian indie game developers, who rely on X as their primary platform for reaching players and connecting with the global gaming community. Fernando Tittz Gândara Rezende, a developer at Games From The Abyss, notes that X was his primary social media platform, which he used to promote his games and stay informed about the latest developments in the gaming industry. Without access to X, his international reach has been severely limited, and it has become harder for him to stay up-to-date with the latest news and trends in the industry. Luciana Guerrero, community and social manager at Rogue Snail, states that her studio has had to explore alternative ways to engage with its audience. Bluesky, a relatively new platform, has experienced a surge in sign-ups, with over three million new users in just two weeks, and has become a top app in Brazil. However, Rezende points out that growing a presence on YouTube is more challenging than on X, and requires more effort and resources. He notes that creating content for YouTube is more time-consuming than posting on X, making it harder for small studios or solo developers to choose between developing their games and creating promotional content. Nicolas Takada, marketing analyst at QUByte Interactive, says that the ban has had a significant impact on his company, as it has lost direct contact with a significant portion of its community. The company has had to invest more time and resources into other platforms, such as TikTok, which has a growing user base and is proving to be an important alternative for creative content. The studios have faced challenges in exploring other platforms, with Guerrero noting that the algorithms of Instagram and TikTok rely heavily on geolocation, limiting Brazilian developers' ability to reach global audiences. Bluesky, although relatively new, has mostly attracted Brazilian users, which is beneficial for local networking but poses risks for connecting with global audiences. Rezende suggests that Discord can be a viable alternative, but it requires effort to draw people to it, while Reddit has rules against self-promotion, making it a more challenging platform for studios to use. Overall, Brazilian developers will face a marketing disadvantage as long as the X ban remains in place, according to Rezende. Takada adds that X was a crucial tool for expanding into international markets, allowing the company to interact with influencers and facilitate global communication. Rezende mentions that Bluesky, although a good alternative, has a smaller global user base than X, affecting the reach of Brazilian developers. He also notes that users who can access X tend to prioritize it over Bluesky, which may lead to delayed information and updates for Bluesky users. The ban has raised concerns about the long-term effects on sales, as studios that rely on international sales may struggle to reach global audiences. Rezende advises Brazilian developers to adapt and find alternative ways to promote and sell their games, sharing experiences and learning from each other to find more efficient solutions. Guerrero notes that her studio has had to rely more on ads and paid traffic, but competing with global game studios that still have access to X is more challenging. The studio is working around this issue by finding external partners to manage X accounts, but this is not a viable solution for every studio in Brazil. Beyond the impact on game studios, Guerrero understands the ban and highlights Musk's disregard for Brazilian laws. She emphasizes that upholding legal orders is essential, and making exceptions for Twitter/X would set a dangerous precedent, suggesting that major fintech owners can operate without accountability in Brazil. The situation remains uncertain, with Takada stating that it is difficult to predict the long-term effects. However, he is confident that the situation will be resolved quickly, allowing Brazilian developers to access X once again. Rezende advises developers to support each other and find alternative solutions, sharing experiences and learning from each other to navigate the challenges posed by the X ban.