On June 26, the Brazilian Supreme Court (STF) concluded the trial on the constitutionality of Article 19 of the Brazilian Internet Act (Law #12,965/2014 – “MCI”), ruling the Article partially unconstitutional.

Article 19 of the Brazilian Internet Act had established that internet service providers (ISPs) could only be held liable for damages arising from third-party content after failing to comply with a specific court order mandating its removal (judicial-takedown), subject to limited exemptions under the notice-and-takedown regime. In a groundbreaking decision, the Supreme Court reshaped this civil liability regime and imposed several regulatory requirements to ISPs operating in Brazil.

The Supreme Court explicitly stated that current internet legislation lacks sufficient safeguards for constitutionally protected rights and democratic principles. Congress was criticized for failing to create new regulations, and the Court declared that, until new legislation is passed, ISPs’ civil liability for damages arising from third-party content regime will vary depending on the content involved:

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These rules do not apply to (a) e-mail service providers, (b) providers primarily offering closed meetings by video or voice, (c) providers of instant messaging services, exclusively with regard to interpersonal communications, protected by the confidentiality of communications. These services remain under the original Article 19 civil liability regime (judicial-takedown). Marketplaces’ liability regime is as provided by consumer legislation.

In addition, the ruling has also established several regulatory requirements for ISPs operating in Brazil, such as:

• Develop self-regulation that includes notification systems, due process, and annual transparency reports;

• Offer accessible customer service channels for both users and non-users;

• Publicly disclose and regularly review their terms of service and content policies;

• Establish and maintain local presence and a representative in the country, with clear and accessible contact information published on their websites.

This decision marks a turning point in Brazil’s digital regulatory landscape. ISPs will now need to strengthen content moderation practices or risk civil liability. Compliance efforts will be essential moving forward.

Our team is closely assessing the new framework and its impacts on ISPs operating in Brazil. For further information, please contact us at info@lickslegal.com.

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