Justice Flávio Dino ordered the release of investigative material on Sunday, days after the Federal Police carried out a nationwide operation examining suspected misuse of congressional budget amendments and other public resources. The investigation is also examining financial transfers connected to the production of the film.

The case involves Senator Flávio Bolsonaro, Bolsonaro’s eldest son and a presidential candidate, as well as former lawmaker Mário Frias and other people connected to the production. Investigators are examining whether money was diverted through organizations and companies linked to the film.

The allegations remain under investigation and do not establish criminal liability.

Police investigate suspected public-fund diversion

The Federal Police launched Operation Make Up on Sept. 10, executing 49 search-and-seizure warrants across four Brazilian states and the Federal District.

According to the Federal Police, the operation is investigating suspected crimes involving public resources from congressional amendments, including possible bid-rigging, embezzlement, document fraud, money laundering and criminal organization.

Mário Frias, a Bolsonaro ally and former culture secretary, was among the targets. Investigators are examining his involvement in the allocation of public funds and his links to organizations associated with Dark Horse.

Dino said the evidence pointed to a possible scheme involving congressional budget amendments and the São Paulo municipal government. He described the hypothesis of a sophisticated system for allocating and diverting public money as having gained strength during the investigation.

Frias has denied wrongdoing and said he did not use congressional funds to finance or benefit the film.

Film financing linked to Banco Master investigation

A separate strand of the case concerns money provided by Daniel Vorcaro, the former owner of the failed Banco Master.

Senator Flávio Bolsonaro is under investigation over allegations involving millions of dollars transferred in connection with financing for Dark Horse. The senator has said the money was intended for the film’s production.

The investigation expanded after the Supreme Court authorized a police inquiry into transfers associated with the film. Justice André Mendonça had previously authorized the investigation after a request from federal investigators and a favorable opinion from federal prosecutors.

The case also involves Eduardo Bolsonaro, another son of the former president, who has been investigated in connection with the financing arrangements. He has denied receiving money from Vorcaro.

Dino releases material as investigation widens

Dino’s decision makes investigative material available publicly while directing federal authorities to continue examining evidence gathered in related investigations.

The material includes evidence previously collected by São Paulo authorities concerning organizations connected to the film’s producer. Brazilian authorities are examining possible links between the production and a separate investigation involving public funding for a municipal Wi-Fi program.

The producer, Karina Ferreira da Gama, has denied irregularities. Her company, Go Up Entertainment, is among the entities examined by investigators.

The investigation has also brought scrutiny to the movement of money through nonprofit organizations and companies connected to the film and to public contracts. Investigators are working to determine whether apparently separate financial transactions were part of a coordinated scheme.

Political stakes rise before election

The investigation comes at a politically sensitive moment for Brazil.

Flávio Bolsonaro is preparing to run for president against incumbent Luiz Inácio Lula da Silva in October. The investigation therefore places a criminal inquiry involving a leading opposition candidate alongside an increasingly contentious debate over the role of the Supreme Court and the handling of corruption investigations.

The court’s decision to make the material public is intended to increase transparency around the investigation, but the documents contain allegations and investigative hypotheses that have not been established as criminal findings.

Authorities must now determine whether the financial links identified in the investigation constitute evidence of crimes and whether any individuals or organizations should ultimately face charges.

For the moment, the unsealing gives the public greater access to the evidence being examined while the federal investigation continues.

Reporting Credit: Supreme Federal Court of Brazil (STF) — judicial decisions and handling of the investigation; Federal Police of Brazil — Operation Make Up, search warrants and investigation into suspected misuse of public funds; Federal Prosecutor’s Office — prosecutorial requests and proceedings related to the investigation; Brazil’s Controladoria-Geral da União — participation in Operation Make Up.

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In a groundbreaking shift that could reshape how social media operates in Latin America, Brazil’s Supreme Court is poised to make tech platforms like Meta, X (formerly Twitter), and Microsoft legally responsible for what users post on their platforms.

The ruling, which is still in progress, already has support from a majority of the court’s 11 justices — enough to effectively pass. Once finalized and published, it will mark a significant departure from the current legal framework and bring Brazil’s tech regulation closer to that of the European Union.

Why This Matters

The move comes amid growing concerns over illegal and harmful content circulating online — from child exploitation and violent content to the spread of misinformation and political extremism. Justice Gilmar Mendes cast the sixth and deciding vote on Wednesday, opening the door for users and victims to sue social media platforms and demand compensation for harmful content posted by others.

Supporters of the measure argue that platforms must take greater responsibility for moderating what’s shared. But critics warn the ruling could severely chill free speech and disproportionately impact smaller companies that don’t have the legal resources to comply.

A Divided Court — and a Divisive Issue

Justice Flávio Dino, who initiated Wednesday’s votes, cited disturbing examples of how violent content spreads unchecked online — including posts celebrating school shootings. “Social media hasn’t brought out the best in humanity,” Dino remarked grimly.

On the other side, Justice André Mendonça — the lone dissenter so far — warned that holding platforms directly accountable could suppress critical voices. “Freedom of expression on social media is essential for holding powerful institutions to account — including governments, political elites, and the platforms themselves,” Mendonça wrote in his opinion.

Legal Context and Political Tensions

Under Brazil’s current law, platforms are only liable for content if they fail to remove it after receiving a court order. This new ruling would change that, placing the burden on companies to act before a judge intervenes.

This legal pivot comes at a tense moment in Brazil–U.S. relations. American officials — including Secretary of State Marco Rubio — have floated possible visa restrictions for foreign authorities accused of censoring U.S. citizens. One of the figures reportedly under scrutiny is Brazilian Supreme Court Justice Alexandre de Moraes, known for pressuring platforms to follow Brazil’s digital regulations.

Fallout and Unanswered Questions

Even if this ruling becomes law, Brazil’s Congress could still pass legislation to override it. Meanwhile, the court has yet to outline exactly how the new standard of liability will be implemented.

Alvaro Palma de Jorge, a legal scholar at the Getulio Vargas Foundation in Rio, said platforms must be proactive: “They can’t just wait for a court order anymore. They need to adopt safeguards to prevent harm before it happens.”

But not everyone is on board.

The Brazilian Chamber of Digital Economy, which represents tech companies and startups, warned that this decision could stifle competition. “Big companies can absorb the legal costs. Small, national platforms can’t,” the organization said in a statement, adding that the move may “raise barriers to innovation and limit user freedom.”

A Step Toward EU-Style Regulation?

Brazil’s approach now closely mirrors the European Union’s efforts to rein in the influence of big tech through strict digital accountability laws. Whether this model can work in Brazil — a country with a large, polarized online population and intense political debate — remains to be seen.

For now, though, the message is clear: Brazil is no longer willing to let social media platforms take a hands-off approach to harmful content.

Source: AP News – Brazil’s Supreme Court justices agree to make social media companies liable for user content

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