Would Brazil Succeed In Imposing Restrictions On IT Giants Like Facebook Inc (NASDAQ:FB)?

Posted by Kristi Scott November 5, 2013 0 Comment 1121 views

On November 4, 2013 Brazilian politicians mentioned that the government plans to force global internet companies like Facebook Inc. (NASDAQ:FB), Google Inc. (NASDAQ:GOOG) and others to store data inside the country as it is facing increasing opposition from Congress. The government wants to shield against the potential allegations of U.S spying the local data. The legislation was proposed by the Brazilian President, Dilma Rousseff upon the revelations that the U.S. National Security Agency conducted surveillance on President’s emails and phone calls as well as those of Brazilian citizens. The measure was added to protect the civil rights and privacy of Brazilian internet users and is expected to face vote this week in the lower chamber of Congress.

However the global internet companies including Facebook and Google have opposed the in-county data storage proposal arguing that it would pose not-so-required barriers in World Wide Web services besides imposing additional cost burden on such companies. If the proposed bill gets passed, the new law would change the way Facebook, Twitter, Google and other multinational tech giants operate in one of the world’s largest telecommunications market.

Brazilian Democratic Movement Party (PMDB), Brazil’s largest political party, opposes any such requirement to force in-country data storage, mentioned Eduardo Cunha who initially favored the proposal. Cunha is the PMDB leader in the lower chamber of Congress. Even the congressman Alessandro Molon, the bill’s author and congressman of President’s ruling Workers Party also opposes the requirement. Amidst the growing criticism in Congress and that of international business lobbies, the President is firm on getting this bill passed and pressing lawmakers to vote on the bill ‘Internet Constitution’ or ‘Marco Civil da Internet’, as early as possible. The original provisions of the bill talk about privacy, net neutrality and freedom of expression.

With leader of the initiative presenting a final version of the Bill, the vote on Marco Civil is expected to take place today.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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