The advancement of proposals that expand the civil liability of digital platforms in Brazil has reignited the debate on the boundaries between content moderation and censorship. On June 26, the STF (Supreme Federal Court) ruled by 8 votes to 3 that platforms operating social networks should be directly liable for illegal posts made by their users. In response, Google publicly admitted it may reduce its operations in the country if the STF “drastically changes” moderation rules, a statement that raised concerns in the digital market.
With 144 million Brazilians active on social networks, according to DataReportal, any change in this scenario directly affects the routine of small advertisers, content creators, and startups that use these platforms for marketing, sales, and customer acquisition. The impact goes beyond freedom of expression; the repeal of Article 19 of the Marco Civil da Internet could open the door to a regime of preventive censorship and incentives for excessive content removal, known as chilling effect. For digital businesses, this represents legal uncertainty and the risk of major players withdrawing, as already signaled by Google.
According to Lucas Mantovani, co-founder of SAFIE,a leading company in legal solutions for technology businesses, startups, and digital enterprises, and an expert in startup legal governance and data protection, prior liability of platforms could compromise fundamental principles in online networks. “Holding platforms liable before a judicial decision undermines fundamental principles like network neutrality and due process. This transfers to the private sector the power—and the fear—of deciding what can or cannot stay online,” he explains. “There are more effective alternatives, such as strengthening notice-and-takedown mechanisms with swift judicial oversight, already adopted in established democracies,” he adds.
With the global legal techmarket surpassing $26 billion, according to the Legal Tech Market Global report, the expert points out that Brazil must ensure legal certainty and predictability to continue attracting innovation and investments in the digital ecosystem. “Without a stable regulatory environment aligned with democratic principles, Brazil risks deterring investors and stifling the development of local technological solutions. Legal predictability is what enables startups to innovate securely and the digital ecosystem to continue generating value for the economy and society,” says Lucas Mantovani.
