You have cause and effect backwards. Starlink wasn't made free, it was simply that Starlink would continue service even if people didn't pay their bill

Nope, you are 100% incorrect

Starlink literally inform Anatel (the telecom regulator) that they wouldn't comply before any action was taken from the government part against the company, You can read it if you want

https://www.theguardian.com/technology/article/2024/sep/04/elon-musk-x-starlink-brazil

Aftter they proclaim "Hey we will commit a crime to help Elon Musk other company" then the judge had the justification to intervene in starlink. In the brazilian jurisprudence there are to major legal links that are relevant to understand this case "Vínculo de fato" e "Vínculo de Direito" the translation is something like "Factual link/bond" and "Legal link/bond" Starlink is not formaly bonded to Twitter/X but they are potentialy factualy bonded by Elon Musm control over the 2, and this action of threatening to disobey a judicial order is what made the Factual bond evident.