VOLUME 55

Welcome to yet another volume of The Pace Report. Below are this week’s biggest stories in tech and culture. Hope you enjoy!

— Jacob Pace

Brazil’s Supreme Court Upholds Ban on Musk's X

What happened: Brazil’s Supreme Court has officially upheld a nationwide ban on Elon Musk’s X (formerly Twitter). The ruling came after Musk’s platform refused to comply with Brazilian regulations on curbing disinformation, particularly following local court orders to remove harmful content. Justice Alexandre de Moraes, a key figure in Brazil's judiciary, issued the ban citing non-compliance and the company’s refusal to appoint a local legal representative, as mandated by law. As part of this ban, users who attempt to access X using VPNs face daily fines of 50,000 reais (approximately $9,000).

Why it matters: This decision emphasizes the Brazilian government's determination to enforce strict regulations on tech platforms that do not adhere to local laws. Musk’s defiance, which includes closing X's Brazilian office and refusing to engage with regulators, could set a broader precedent for how governments worldwide might approach international tech giants that challenge local regulations. With over 21 million users in Brazil, X’s suspension could have bigger implications on political discourse, business, and the future of social media governance globally.

Qatar Introduces Revolutionary Digital Assets Framework

What happened: On September 1, 2024, Qatar’s Financial Centre Authority introduced a regulatory framework for digital assets. The new rules govern token creation, trading, and security, making Qatar a regional leader in digital finance. These regulations align with Qatar’s broader strategy for economic diversification under its 2030 National Vision.

What to watch: As Qatar positions itself as a hub for digital assets, expect more global companies to enter the market. The rules are designed to ensure robust cybersecurity and legal clarity, which could attract significant foreign investment. This move also comes at a time when blockchain and digital assets are gaining momentum across the Middle East.

Snapchat to Introduce Ads in Chats

Behind the scenes: Snapchat is venturing into new territory by introducing “Sponsored Snaps” directly into users’ Chat tabs. These ads will appear alongside conversations with friends, a first for the app. CEO Evan Spiegel revealed that the feature will allow advertisers to push content without disrupting notifications.

The big picture: This is part of Snapchat’s larger strategy to boost ad revenue as its stock price continues to underperform. Despite reaching over 850 million monthly users, Snap’s ad business remains small compared to competitors like Meta. By placing ads in its most-used feature, Snap hopes to drive engagement while walking a fine line with user experience.

Meta AI Hits 400 Million Monthly Users

What they’re saying: Meta AI has been rapidly gaining traction, now boasting 400 million monthly users. Mark Zuckerberg recently shared that the AI assistant is used by 185 million people every week, a major milestone for Meta’s AI strategy. The assistant is integrated into the company’s suite of apps, including Facebook, Instagram, and WhatsApp.

Why it matters: Meta’s success in the AI race highlights the growing demand for intelligent digital assistants. With competition from Microsoft’s Copilot and Google’s Gemini, Meta AI is poised to become a dominant player. As Meta expands its reach to new markets, including the EU and Brazil, AI-driven experiences are becoming a core part of the digital ecosystem.