Internet Bill Becomes Law

On April 23, 2014, during the launch of NETMundial, the Global Multistakeholder Meeting on the Future of Internet Governance, President Dilma Rousseff sanctioned the bill that creates the Internet Legal Framework. The bill had been debated in the House of Representatives on the basis of constitutional urgency since September 2013 and was approved by the Senate without changes. The bill, designated as Law no. 12,965/14, will come into force in late June.

The new law affects net neutrality, freedom of speech, the liability of providers for user-generated content, privacy, and the retention of logs. Additionally, a number of important aspects of the law will affect the day-to-day operations not only of companies based in Brazil or having a subsidiary in the country but also companies based abroad that deal with Brazilian internet data.

Net neutrality

The law creates the concept of net neutrality, expressly requiring equal treatment of data packages within Internet traffic. The exceptions are still to be detailed, which gave rise to debates in the House of Representatives plenary session.

The principle of neutrality stipulates that companies shall not be allowed to determine access based on content. Although they can continue to offer different packages, with different access speeds and data volumes, they cannot prioritize specific services or applications in prejudice of others.

Possible exceptions may prioritize emergency services, public security, and other matters of national interest - and may be related to the technical feasibility of service provision - but are not permitted to benefit companies and clients. The Brazilian National Communications Agency (ANATEL) and the Internet Steering Committee (CGI) will be consulted with respect to the regulation of exceptions.

Privacy

The new law is imbued with sections and provisions intended to guarantee the privacy of users and the protection of personal data, all in accordance with the Federal Constitution, the Consumer Defense Code, the Copyright Bill of Law, and Decree no. 7,962/13, which regulates electronic commerce.

The use of a user's data must be clearly explained by companies that provide services to the user via the Internet, including future or third-party use of the data. This is applicable even to companies based abroad that market their products and services to Brazilian customers over the Internet without a local presence.

According to the law, any contracts that restrict access...