Brazil is moving fast. The country's legislature has finalised a sweeping digital services regime that imposes direct obligations on technology companies offering digital services to Brazilian users – regardless of where those companies are incorporated. International businesses that miss the compliance window face suspension of services, administrative fines, and reputational damage in one of Latin America's largest digital markets.
Brazil's new digital services regulation establishes mandatory requirements for technology companies operating in or directing services toward Brazil, covering algorithmic accountability, software liability standards, and technology licensing obligations. Companies that meet the user-threshold criteria must achieve compliance before the regulatory deadlines set for 2025 and 2026. Failure to comply may result in administrative penalties, access blocking, and mandatory audits by the competent Brazilian regulatory authority.
This alert explains what changed, which business categories are affected, and the immediate actions international companies should take now.
What changed – the regulatory development and effective dates
Brazil's digital services legislative regime has consolidated obligations across several branches of law. These include technology legislation, civil liability rules, consumer protection law, and data protection legislation – the Lei Geral de Proteção de Dados (LGPD, Brazil's General Data Protection Law). The new rules build on and extend these existing branches.
The core change is the introduction of a unified digital services duty of care. Platforms and technology companies must now demonstrate active content moderation, algorithmic accountability, and transparent complaint mechanisms. Passive hosting defences that once shielded intermediaries from software liability have been significantly narrowed.
Two effective dates govern the rollout. Obligations related to transparency reporting and algorithmic accountability apply from mid-2025. Obligations related to audits, software liability standards, and technology licensing apply from the first quarter of 2026. Companies that provide digital services to Brazilian users should treat both dates as hard deadlines – not aspirational targets.
AI Act compliance frameworks developed for the European market offer a useful reference point, but they do not substitute for Brazilian-specific obligations. Brazil's regime diverges in several areas, particularly on the scope of algorithmic disclosure and the role of consumer protection authorities as enforcement bodies.
Who is affected – threshold criteria and business categories
The regulation applies to any entity providing digital services in Brazil. This includes social networks, app stores, search engines, content-sharing platforms, cloud service providers, and marketplaces. It also captures software-as-a-service providers and companies that use automated decision-making systems to affect Brazilian users.
Threshold criteria determine the intensity of obligations. Companies above the user-volume threshold – those that serve a significant share of Brazil's internet-connected population – face the heaviest duties. These include mandatory algorithmic audits, annual transparency reports, and appointment of a local compliance representative. Smaller operators face a lighter set of requirements but are not exempt from the core digital services duty of care.
Importantly, the rules apply based on where users are located, not where the company is incorporated. A technology company based in Europe, the United States, or Asia that directs digital services toward Brazilian users falls within scope. Geographic distance provides no protection.
Companies in the following categories should assume they are within scope and seek specific advice without delay:
- Social media and messaging platforms with Brazilian user bases
- E-commerce marketplaces accepting Brazilian sellers or buyers
- Cloud and SaaS providers serving Brazilian corporate clients
- Fintech and payment platforms licensed or operating in Brazil
- AI-powered services making automated decisions affecting Brazilian users
For a detailed assessment of how AI and technology law obligations apply to your operations in Brazil, our team can provide a jurisdictional review tailored to your business model.
To receive a preliminary assessment of whether your company meets the threshold criteria under Brazil's digital services regime, contact us at info@ferrazwhitmore.com.
Immediate actions for international companies
Companies with Brazilian user exposure should initiate the following steps without delay.
Map your exposure. Identify every product or service directed at Brazilian users. Determine whether your user volumes cross the statutory threshold. This mapping exercise should cover both direct services and services provided through Brazilian subsidiaries or reseller partners.
Review algorithmic accountability obligations. The new rules require documented processes for algorithmic decision-making that affects users. Review your recommendation systems, content-ranking tools, and automated moderation systems. Prepare internal documentation that can withstand regulatory scrutiny.
Assess software liability exposure. Brazil's civil liability rules now interact directly with the digital services regime. Companies that knowingly facilitate unlawful content or transactions face direct liability. Legal teams should audit terms of service, complaint mechanisms, and notice-and-takedown procedures.
Review technology licensing arrangements. The regulation introduces new conditions on technology licensing agreements involving digital services delivered to Brazilian users. Existing contracts should be reviewed for compliance with the updated technology licensing rules before the 2026 deadline.
Appoint a compliance representative. Companies above the user threshold must designate a representative in Brazil for regulatory correspondence. This is a hard requirement – not a best-practice recommendation. Failure to appoint a representative is itself a sanctionable breach.
Companies with intellectual property assets deployed in the Brazilian market should also review their positions under the updated rules. Our analysis of intellectual property considerations for technology companies in Brazil addresses the interaction between IP rights and the new digital services obligations.
Developments in Brazil's digital services regime track – but do not mirror – regulatory movement in other jurisdictions. For comparative context, our alert on digital services regulation in the United States sets out how the two regimes differ in scope and enforcement approach.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising technology companies, institutional investors, and multinational businesses across 46 jurisdictions. Our Americas practice, led by International Counsel Marco Reyes, provides hands-on support to companies navigating digital services regulation, AI and technology law, and cross-border compliance obligations in Brazil and across Latin American markets. As a law firm in Brazil with deep regional expertise, we advise clients on algorithmic accountability requirements, software liability exposure, and technology licensing matters under Brazilian law. Our team combines Portuguese civil law expertise with common law analytical discipline to deliver results-oriented counsel across civil law systems. To discuss your company's compliance position under Brazil's new digital services rules, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.