New data storage demands may put companies off Brazil

New data storage demands may put companies off Brazil

Summary: Brazilian IT trade body issues warning against upcoming regulations


As politicians get ready to vote Brazil's first set of rules to govern the internet, the country's IT trade body Brasscom warned that the regulations may hurt the local economy in many ways.

According to Brasscom, the mandatory local data storage provisions of the Marco Civil da Internet, due to be voted by the House of Representatives tomorrow, will mean an increase in costs incurred by local IT companies and prompt these firms to move their operations elsewhere.

Companies such as Facebook and Google have already expressed concern about the upcoming laws.

"This obligation may drive citizens, businesses and other institutions run the unnecessary risk of being excluded from the enormous potential of the digital economy, hurting the country's ability to create, innovate, create jobs and collect taxes from the proper use of the Internet," Brasscom says, in a letter sent to the House of Representatves, the Senate and president Dilma Rousseff.

Earlier this year, Brasscom had predicted that the Brazilian IT industry would grow by 7.3 percent on last year's figures. But the association is worried that the possibility of requirements for local data storage could put a spanner in the works, with  other countries introducing reactive policies that would affect exports of technology services from Brazil.

"In reverse motion, [these requirements] can stimulate the migration of datacenters based here, or at least part of them, to other countries, with a possible loss in terms of tax revenues and job creation," says the Brasscom letter.


Topics: Big Data, Networking, Storage

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  • No real difference

    to the existing EU laws. All person relevant data (i.e. data that can identify a person) cannot be stored outside the EU and cannot be given to entities outside the EU without first obtaining written permission of those affected (i.e. the contacts in your contact list etc.).

    Finance data is even more strict, here it cannot be stored outside the country of origin, without first obtaining a special licence to do so from the originating country's tax office.

    This makes cloud services with a base in America very vulnerable. They are strictly speaking walking a grey line, but with the Patriot Act and FISA/FISC they are leaving their customers open to prosecution and with the recent revelations about the NSA tapping into pretty much everything that goes through America, it precludes pretty much any European business from using cloud services which also have a presence in America.

    Technically speaking, private cloud stuff, like iCloud, Outlook, Google services etc. are also quasi illegal and could leave the users of the service in Europe open to prosecution. Due to the convinience of such services, a quasi blind-eye is turned towards them at the moment, but the NAS affair could lead to a backlash on cloud services, with companies and countries becoming more closed off from each other than they were.

    It sounds like Brazil is moving in a similar direction.