US giants complain about the STF and the taxation of big techs in Brazil: what is known

by Andrea
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American technology giants brought to the government of Donald Trump a series of complaints against decisions of the Supreme Court (STF), Anatel and against the threat of taxation of calls big techs by the Lula government. The document, prepared by the Information Technology Industry Council (ITI), was sent to the US Commercial Representative’s office (USTR), under the investigation on Brazilian commercial practices.

The clash occurs in parallel to the movement of the plateau to harden rules about the sector. According to the calculation of G1President Luiz Inacio Lula da Silva decided to send to Congress two bills at once: one that creates content regulation rules and another of economic regulation, focusing on the five largest big techs (Google, Amazon, Apple, Meta and Microsoft).

The proposal provides for fines and even blocking platforms that do not act against fraud, crimes against minors and illegal content. The economic regulation provides for measures against unfair competition, such as abusive rates in application stores and married service.

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US giants complain about the STF and the taxation of big techs in Brazil: what is known

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Understand, below, everything that is known about the complaints of American companies.

What is ITI and who participates

Information Technology Industry Council) brings together 81 weight members: Visa, Mastercard, Amazon, Google, Apple, Microsoft, Meta, IBM, Intel, Dell, Nvidia, among others. The entity defends interests of companies of payment, software, social networks, cybersecurity, data processing and data centers.

The criticism of the Supreme Court

One of the main targets of the document was the decision of the Supreme Court in June on article 19 of the Internet Civil Marco. The Court has established that platforms can be held responsible for content published by third parties if they do not remove material after extrajudicial request.

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Previously, Article 19 guaranteed a “safe haven” – companies only responded to judicially if they dispense with express order of justice. For ITI, this change generates a risk of censorship:

“Change will favor a more conservative approach to content hosting in Brazil, potentially stifling legitimate discourses and silenced voices that politically oppose any Brazilian administration over time.”

Anatel rules and impact on marketplaces

Following the trial, Anatel determined that Marketplaces such as Free Market, Amazon, Shopee and Magalu will be responsible for advertisements for irregular products. The rule goes to platforms that only promote or publish ads.

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According to the association, “this regulatory approach not only increases legal and operational uncertainty for US companies, but it can also discourage investments and limit consumer access to a wider range of products and services.”

BIG TECHS RATING

Iti does not mention the Lula government project, but already shows concern about the taxation of bug techs. The group cites as an example the project of Deputy Guilherme Boulos (PSOL-SP), which creates the Digital Social Contribution (CSD). The fee would focus on digital advertising based on user data and sell or transfer this data.

The association sees a risk of retaliation and asks for surveillance from the US. “The US government should remain vigilant in opposition to proliferation of measures aimed at US companies, try to isolate the digital economy or disregard international tax standards,” says Iti.

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Artificial intelligence on the target

Iti also criticized Bill 2338/2023, which regulates artificial intelligence in Brazil. The text provides for compensation to authors of content used by AI tools and more rigid rules for its use.

“In many cases, these requirements are unfeasible from a technical and operational point of view. The bill will restrict US AI developers from exporting their tools and services to Brazil, disrupting a harmful blow to US companies that are in fierce competition with Chinese technology companies.”

The position of the Trump administration

Iti requested that Washington presses Brazil in commercial negotiations, noting that the country is a key market: US technology exports to Brazil have generated nearly $ 5 billion surplus. “This dialogue is essential to ensure regulatory predictability,” said the entity.

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