Autor: Bernardo Menicucci Grossi

Despite its complex legal system and the amount of administrative rules that are often cited by international publications as sources of legal uncertainty, Brazil still continues to attract the eyes of investors and entrepreneurs from around the world.

An excerpt from the Brazil Startup Report shows the country as a gateway to success in Latin America as the companies that have succeeded there are the largest in the region.

Yet, Brazil has such a  significant market that it equals or even exceeds the sum of all other Latin American countries combined. For instance, the country has 99m internet users and the region only 95m. The number of mobile subscriptions (242m) is larger than it’s own population and bigger than the regions’ (215m).

Despite great difficulties and the permanent debate about the paperwork involved in setting up new companies, it is still common to note entrepreneurial initiatives thrive as they sailed into a blue ocean.

But bureaucratic barriers are not the only problems faced by companies in Brazil. Although uncommon, some court decisions have shown complete ignorance about the nature of the internet, establishing a definitive cultural adversity for new business development.

The latest example regards a Judge from the State of Minas Gerais who announced adecision to block Facebook.com access to all brazilians due to its  noncompliance with a previous court order.

The matter, itself, is related to a determination to Facebook Serviços Online no Brasil Ltda to present in court the registration data sent and received from certain contacts from July, 1st 2013 to January, 17th 2014 in order to identify the author of some offenses.

According to the decision, Facebook had only provided information pertaining Ip Addresses and Timelogs, what was considered a deliberate desobedience.

Therefore, it was determined a fine of $10mi to be increased to $30mi, plus $500k per day in case of another desobedience. This decision, still subject for further appeal, clearly challenges the recent Brazilian Internet Bill of Rights that created a safe harbour for this kind of intermediary on the Internet .

Although Brazil still remains as an underexplored opportunity for new business, it is equally true that entrepreneurs need, more than ever, comprehensive planning and legal advice from whom understands the legal and cultural implications of the country.

Fonte: DeferoLaw.com, 17 jul. 2014.