Fines have been issued over and over. FB's president in Brazil has been arrested. What else do you suggest this judge (limited by what the law prescribes) should do?
doesn't law there mandate retaining of all communications for service providers?
if that's the case, as hinted by other people, and whatsapp has been found in violation of that requirement, then blocking it seems the correct course of action (given the judge cannot change nor ignore the law)
the big IF is what the Brazilian communication law mandates to companies providing a service on their territory.