The advancement of proposals that expand the civil liability of digital platforms in Brazil has reignited the debate over the boundaries between content moderation and censorship. On June 26, the Supreme Federal Court (STF) ruled, by a vote of 8 to 3, that platforms operating social networks must be held directly responsible 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 heightened concerns in the digital market.
With 144 million Brazilians active on social networks, according to DataReportal, any change in this scenario directly affects the routines 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 potential end of Article 19 of the Brazilian Civil Rights Framework for the Internet could pave the way for a regime of preventive censorship and encourage excessive content removals, known as the chilling effect. For digital businesses, this represents legal uncertainty and the risk of major players scaling back, as already hinted by Google.
According to Lucas Mantovani, co-founder of SAFIE, a leading legal solutions provider for tech companies, startups, and digital businesses, and an expert in startup legal governance and data protection, holding platforms liable prior to a judicial decision could undermine fundamental principles of online networks. “Holding platforms accountable before a court decision compromises fundamental principles such as net neutrality and due process. This transfers to the private sector the power—and the fear—to decide what can or cannot remain online,” he explains. “There are more effective alternatives, such as strengthening takedown mechanisms with swift judicial oversight, already adopted in established democracies,” he adds.
With the global legaltech market exceeding $26 billion, according to the Legal Tech Market Global report, the expert highlights that Brazil needs to ensure legal security and predictability to continue attracting innovation and investments in the digital ecosystem. “Without a stable regulatory environment aligned with democratic principles, Brazil risks driving away investors and stifling the development of local technological solutions. Legal predictability is what allows startups to innovate safely and the digital ecosystem to keep generating value for the economy and society,” says Lucas Mantovani.
