ABES – Brazilian Association of Software Companies has been following with attention and concern the debates around Bill 2630 of 2020, which intends to institute the Brazilian Law of Freedom, Responsibility and Transparency on the Internet. Check below the letter sent to His Excellency Arthur Lira, President of the Chamber of Deputies:

São Paulo, April 28, 2023

to the most excellent Lord
Arthur Lira
President Chamber of Deputies

Honorable Member, The Brazilian Association of Software Companies (ABES)1 has followed with attention and concern the debates around Bill 2,630 of 2020, which intends to establish the Brazilian Law of Freedom, Responsibility and Transparency on the Internet. PL 2630, which originally had the main objective of curbing the spread of disinformation, ended up having its scope greatly expanded during the debates in the Chamber of Deputies, including after the closure of the activities of the Working Group formed in this House to discuss the matter in 2021 The recent proposals presented by the Executive Branch for further modifications to the text of the bill would further expand the scope of the bill.

Considering the potential impact of the proposed legislation on various sectors of the economy, not just the technology sector, as well as all the changes proposed and carried out in the text of the project since the end of 2021, more discussions, for the construction of a regulation capable of maintaining investments and business development in Brazil would be necessary.

The expansion of themes that go beyond the original objectives of the proposal, both in relation to online services aimed at companies and citizens, can directly impact the innovation and agility of digital business in Brazil, even in the regular course of business, without involving situations of misinformation.

Likewise, it is important to highlight that there are regulatory models evolving in different countries on the subject,2 and even new infralegal regulations in Brazil that touch the matter.3 The expansion of debates should consider potential benefits of harmonizing the treatment given to platforms that, in general, have global operations, promoting Brazil's role in the digital environment.

It is important to discuss in detail some critical points of PL 2630/2020, which have major impacts on the digital economy ecosystem, including the following:

(i) Digital Advertising: Personalization benefits both people and advertisers. Without it, small companies that sell their products through the platforms will be harmed, due to the potential increase in campaigns and the need to reveal commercial strategies.

(ii) The remuneration system for copyrights is very comprehensive, creating legal insecurities, even requiring remuneration for content voluntarily made available on the platforms. The issue of copyright should be discussed in specific legislation, allowing discussion and construction by the different actors interested in the theme.

(iii) Inapplicability of the General Data Protection Law (LGPD) for platform transparency reports;

(iv) Too many provisions to be regulated by a yet-to-be-defined body, which would leave a lot of room for the Executive Branch to define substantive criteria for legislation, which should be in the very text of the Law. These provisions include potential supervisory costs and fees to be imposed on platforms;

Companies associated with ABES support public policies that promote the responsible and transparent use of the Internet. We defend that any rules on the use of digital services in Brazil, when necessary, are consistent with the legal and regulatory frameworks in force in the country, have been the result of extensive debate and follow the best international practices. In addition, we understand that it is essential that any regulations recognize the terms of use of digital provider services so that the Internet becomes a safe environment that promotes freedom of expression.

We therefore request that PL 2630 be the subject of a structured and holistic debate, that, even with the urgency approved, the text be further debated before its vote on the merits.

We are at your disposal to clarify any doubts about the points described above.

Yours sincerely,
Paulo Milliet Roque
President of ABES

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