Brazilian regulatory and legislative approaches towards internet-based and personal data-voracious services are surprising “market-friendly” than most entrepreneurs can think.
It’s a fact that the public opinion and cultural imaginary are very aware of the data-driven business intelligence beneath new services and an urge of privacy arose from the fear of an imminent totalitarian dystopia. Well, if something like that one day may occur, it will be no Brazilian legislation that stops the process.
The Brazilian General Data Protection Law (LGPD) is a bill that adopts the same framework as the European Union General Data Protection Regulation (GDPR). Structurally the LGPD is very similar to the EU model, however, the similitudes don’t extend in the same way to the semantic content.
Meanwhile, the EU GDPR brings certain protectionism praxis over the citizen’s personal data, for example, the cross borders and extraterritorial limitations on data processing as well as acquisition and usages of such dataset, or the high punitive penalties for data breaches over internet-based services, the BR LGPD stands for economic liberty over individuals rights and restrictions.
The openness of Brazilian law can be shown over the automated decisions on personal data, unlike its EU predecessor, the bill doesn’t impose human supervision/revision of the processor to use algorithm credit scores, nor any automated decision based on personal data analysis. This can sound awful for some but is the deal-breaker for various credit and financial services stimulated by the authorities.
The so-called fintechs are one of these expected actors to mitigate the highly concentrated retail bank market, so much to Brazil´s Central Bank create the figure of SCD and SEP. These non-financial societies for microcredit are permitted to operate with less regulatory obligations and 100% foreign capital.
In addition, the basis for open bank initiatives can be found in the LGPD covering financial and credit personal data portability and the freedom of choice of the client. With this, the Brazil Central Bank already anticipate some of its near future regulations in the Comunicado 33.455 of 2019 launching fundamental requirements for open banking implementations.
The 7th biggest economy in the world is broad open arms to the development of personal data-eager services, betting high in these fast-paced technological enterprises with some new youngbloods to bite giants’ financial institutions oligopolies.
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Lawyer Author of the Comment: Luiz Henrique Rodrigues de Souza
“If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.”
“Se quiser saber mais sobre este tema, contate o autor ou o Dr. Cesar Peduti Filho.”