UPDATE: Brazilian Judge Shuts Down WhatsApp And Brazil’s Congress Wants To Shut Down The Social Web Next

Comment

Julie Ruvolo

Contributor

Julie Ruvolo, a former writer for TechCrunch, is the head of editorial content for the Latin American Private Equity and Venture Capital Association.

More posts from Julie Ruvolo

UPDATE: WhatsApp came back online 12 hours into a court-ordered 48-hour blackout across Brazil for refusing to turn over data in an investigation, after a second judge ruled that “it does not seem reasonable that millions of users are affected” and suggested a financial penalty instead.

Overnight, messaging app Telegram gained 5 million new Brazilian users, and Twitter lit up with scenes from Castaway, imagery of people sitting alone on the moon, and people looking depressed in general.

Trending hashtags included #eusemwhatsapp (me without WhatsApp) and #nessas48euvou (In these 48 hours I’m going to…).

If the anti-privacy legislation Brazilian Congress has on the table makes its way into law, companies like WhatsApp, Facebook and Google will have drastically increased obligations to collect, retain and share sensitive user data with the government.

A judge in Sao Paulo has ordered WhatsApp to shut down for 48 hours, starting at 9pm Eastern tonight.

WhatsApp is the single most used app in Brazil, with about 93 million users, or 93% of the country’s internet population. It’s a particularly useful service for Brazil’s youth and poor, many who cannot afford to pay the most expensive plans on the planet.

Brazilian telco’s have been lobbying for months to convince the government that WhatsApp’s voice service is unregulated and illegal (not entirely unlike the taxi industry’s posture on Uber),  and have publicly blamed the “WhatsApp effect” for driving millions of Brazilians to abandon their cell phone lines.

A WhatsApp shut-down would be akin to taking half the country off the electricity grid because of an industry squabble over the impending threat of solar power.

It’s a particularly baffling move when you consider that Brazil is the Social Media Capital of the Universe: Brazilians are the #2 or #3 audience on every major global social platform, and on a per-user basis, Brazilians spend almost double the time on social media as Americans.

But a temporary WhatsApp shutdown is not even close to the craziest thing happening with the Brazilian internet right now.

If Brazil’s conservative Congress gets its way, they’re going to take down the entire social web as we know it, with bills circulating through the legislature to criminalize posting social media content and to allow the government to spy on its citizens.

It’s an about-face from last year, when President Dilma Rousseff approved Marco Civil, a groundbreaking Internet “Bill of Rights”, as a response to the Snowden revelations that the NSA was spying on Brazil. The landmark bill, Brazil’s first internet legislation, protects net neutrality, user privacy and freedom of speech.

Since then, Brazil’s economy has spiraled into crisis, triggered in large part by a wide-reaching corruption scandal at the state-owned Petrobras oil behemoth that is investigating heads of Brazil’s biggest construction firms, some 50 politicians who are currently in office, and even ex-President Lula.

Meanwhile, Dilma’s approval rating has stagnated in the single digits, and many are calling for her impeachment, including Eduardo Cunha, Brazil’s equivalent of the Speaker of the House. Cunha  is under investigation himself for corruption and accused of laundering millions of dollars in a scandal involving the Brazilian oil company Petrobras.

Cunha, a former telco lobbyist, was one of the biggest opponents of Marco Civil (particularly its net neutrality clause) before the legislation made its way to Dilma’s desk and into law.

But a year later, he controls a Congress dominated by evangelical extremists and military dictatorship apologists, and is authoring or advocating on behalf of a slate of proposed laws that would not only dismantle Marco Civil’s provisions for consumer privacy and freedom of expression, but would also effectively criminalize the use of social media.

PL 215/15, which opponents are nicknaming the Big Spy (“O Espião”), is a surveillance law that would require Brazilians to enter theirtax ID, home address and phone number to access any website or app on the internet, and require companies like Facebook and Google to store that information for up to three years and provide access to police with a court order. An earlier draft said “competent authorities” could request the data without a court order.

Another part of the law, authored by Cunha, would allow politicians to censor social media practically at will.

It’s a twist on the European Union’s “right to be forgotten” legislation, which establishes a process for private citizens (but not public figures) to request some forms of sensitive content from their past to be de-indexed from search results (but not removed from the web).

The version Cunha authored would allow Brazilian politicians to not just request content they found defamatory, injurious, or simply out of date to be de-indexed, but actually order it to be taken down from the web (and with a court order, police could have the home address and tax ID of the person who published it on, say, Facebook).

Congress’ lower house approved PEC 215  in October. Now it goes to a Congressional vote before it would move on to the Senate, and ultimately Dilma’s vote.

Screen Shot 2015-12-16 at 11.39.23 PM
WhatsApp is trending on Twitter in Brazil

 

“This is a very good example of how Congress thinks about the internet,” says Ronaldo Lemos, one of the instigators of Marco Civil, and current director of the Internet Technology Society in Rio de Janeiro. “All this effort and energy to criminalize the internet. Many politicians in Brazil feel that the internet is only used to say bad things about them. They hate the internet. It’s a threat.”

Lemos says the proposed legislation is the biggest threat to freedom of expression Brazil has seen in decades.

For those unfamiliar with Brazilian politics, free speech is but one of a rainbow of civil rights under Cunha’s attack.

This year alone he’s also pushed forward legislation for a “gay cure”; a law that allows 16 year-olds to be tried as adults in the criminal system; another one that bans the day-after pill and restricts rape victims’ access to abortion; and one called PEC 215 — not to be confused with PL 215 —  that removes Indigenous Brazilians’ constitutional right to their land. And gives it to Congress.

It’s also worth noting that Cunha is not the only one behind the anti-internet legislation, and that the aforementioned bills are not the only ones on the table — or even the worst.

Many politicians in Brazil feel that the internet is only used to say bad things about them. They hate the internet. It’s a threat. Ronaldo Lemos, director of the Internet Technology Society

Among the other anti-internet bills that have been introduced within a year of Marco Civil’s passing — all authored by members of Congress’s evangelical bloc — is PL 1676, which may be voted on this week.

PL 1676 would make it a crime punishable by up to two years in jail for anyone to film, photograph or capture the voice of a person without their express authorization (making even selfies potentially criminal, if someone shows up in the background of the photo). The penalty jumps to up to six years if the footage is posted on the internet.

There’s more: PL 1547 and PL 1589, addendums to PL 215, would increase the penalty for cases of libel, slander and defamation on the web.

PL 2390  would create a centralized database of Brazilian internet users as a means to prohibit children and adolescents from accessing inappropriate content, but could just as easily be used to keep Brazilian youth — the fastest-growing and most active segment of internet users — from accessing major social platforms like YouTube and Twitter.

What’s at stake here is freedom of expression and the right to privacy in what may soon be the biggest social media market on the planet.

With less than half the number of Americans online, Brazil is already the #2 or #3 player behind the US on every major social platform globally — Facebook, Google, Twitter, you name it. And there are still another 100 million Brazilians who have not come online yet, including wide swaths of the youth, poor and rural demographics. It is entirely possible that in the next ten years Brazil will have the largest internet audience on the planet in terms of social media consumption, and that Millennial Brazilians will be the most socially active population on the planet.

To get a sense of just how disruptive internet adoption is in Brazil — and how big of a threat it is to the established order — consider that millennials are the only Brazilians alive today who have never lived under a military dictatorship (Brazil had two of them over the 20th century, the last one ending in 1985).

And as they come online, they are increasingly using the social web as a tool to speak out and organize. They used Facebook Events to bring millions to the streets in Brazil’s historic protests in 2013 ahead of the World Cup. Theycollaboratively drafted their own Marco Civil legislation, crowdsourcing 70% of the bill’s final text online. Independent media collectives like Midia Ninja and Papo Reto are attracting global attention for reporting on issues like rampant police violence against poor black youth.

In this context, the proposed anti-internet legislation is a direct reaction to this emerging digital empowerment, and a multi-pronged attack on social media — restricting access for Brazil’s poor and youth demographics to access the internet, criminalizing the posting of practically all video, photo and audio content, and censoring voices out of favor with the current government.

Industry experts agree that at least some combination of these proposed laws is likely to pass Congress. Eventually, however, the bills will stop at President Dilma’s desk.

Dilma pushed for Marco Civil last year, and her party has historically imposed these kinds of restrictions — although with the impending impeachment battle, Dilma’s days may be numbered. Politicians aside, we can look forward to seeing how Brazil’s digital generation decides to rally in support of the open web.

More TechCrunch

Charging has long been the Achilles’ heel of electric vehicles. One startup thinks it has a better way for apartment dwelling EV drivers to charge overnight.

Orange Charger thinks a $750 outlet will solve EV charging for apartment dwellers

So did investors laugh them out of the room when they explained how they wanted to replace Quickbooks? Kind of.

Embedded accounting startup Layer secures $2.3M toward goal of replacing Quickbooks

While an increasing number of companies are investing in AI, many are struggling to get AI-powered projects into production — much less delivering meaningful ROI. The challenges are many. But…

Weka raises $140M as the AI boom bolsters data platforms

PayHOA, a previously bootstrapped Kentucky-based startup that offers software for self-managed homeowner associations (HOAs), is an example of how real-world problems can translate into opportunity. It just raised a $27.5…

Meet PayHOA, a profitable and once-bootstrapped SaaS startup that just landed a $27.5M Series A

Restaurant365, which offers a restaurant management suite, has raised a hot $175M from ICONIQ Growth, KKR and L Catterton.

Restaurant365 orders in $175M at $1B+ valuation to supersize its food service software stack 

Venture firm Shilling has launched a €50M fund to support growth-stage startups in its own portfolio and to invest in startups everywhere else. 

Portuguese VC firm Shilling launches €50M opportunity fund to back growth-stage startups

Chang She, previously the VP of engineering at Tubi and a Cloudera veteran, has years of experience building data tooling and infrastructure. But when She began working in the AI…

LanceDB, which counts Midjourney as a customer, is building databases for multimodal AI

Trawa simplifies energy purchasing and management for SMEs by leveraging an AI-powered platform and downstream data from customers. 

Berlin-based trawa raises €10M to use AI to make buying renewable energy easier for SMEs

Lydia is splitting itself into two apps — Lydia for P2P payments and Sumeria for those looking for a mobile-first bank account.

Lydia, the French payments app with 8 million users, launches mobile banking app Sumeria

Cargo ships docking at a commercial port incur costs called “disbursements” and “port call expenses.” This might be port dues, towage, and pilotage fees. It’s a complex patchwork and all…

Shipping logistics startup Harbor Lab raises $16M Series A led by Atomico

AWS has confirmed its European “sovereign cloud” will go live by the end of 2025, enabling greater data residency for the region.

AWS confirms will launch European ‘sovereign cloud’ in Germany by 2025, plans €7.8B investment over 15 years

Go Digit, an Indian insurance startup, has raised $141 million from investors including Goldman Sachs, ADIA, and Morgan Stanley as part of its IPO.

Indian insurance startup Go Digit raises $141M from anchor investors ahead of IPO

Peakbridge intends to invest in between 16 and 20 companies, investing around $10 million in each company. It has made eight investments so far.

Food VC Peakbridge has new $187M fund to transform future of food, like lab-made cocoa

For over six decades, the nonprofit has been active in the financial services sector.

Accion’s new $152.5M fund will back financial institutions serving small businesses globally

Meta’s newest social network, Threads, is starting its own fact-checking program after piggybacking on Instagram and Facebook’s network for a few months.

Threads finally starts its own fact-checking program

Looking Glass makes trippy-looking mixed-reality screens that make things look 3D without the need of special glasses. Today, it launches a pair of new displays, including a 16-inch mode that…

Looking Glass launches new 3D displays

Replacing Sutskever is Jakub Pachocki, OpenAI’s director of research.

Ilya Sutskever, OpenAI co-founder and longtime chief scientist, departs

Intuitive Machines made history when it became the first private company to land a spacecraft on the moon, so it makes sense to adapt that tech for Mars.

Intuitive Machines wants to help NASA return samples from Mars

As Google revamps itself for the AI era, offering AI overviews within its search results, the company is introducing a new way to filter for just text-based links. With the…

Google adds ‘Web’ search filter for showing old-school text links as AI rolls out

Blue Origin’s New Shepard rocket will take a crew to suborbital space for the first time in nearly two years later this month, the company announced on Tuesday.  The NS-25…

Blue Origin to resume crewed New Shepard launches on May 19

This will enable developers to use the on-device model to power their own AI features.

Google is building its Gemini Nano AI model into Chrome on the desktop

It ran 110 minutes, but Google managed to reference AI a whopping 121 times during Google I/O 2024 (by its own count). CEO Sundar Pichai referenced the figure to wrap…

Google mentioned ‘AI’ 120+ times during its I/O keynote

Firebase Genkit is an open source framework that enables developers to quickly build AI into new and existing applications.

Google launches Firebase Genkit, a new open source framework for building AI-powered apps

In the coming months, Google says it will open up the Gemini Nano model to more developers.

Patreon and Grammarly are already experimenting with Gemini Nano, says Google

As part of the update, Reddit also launched a dedicated AMA tab within the web post composer.

Reddit introduces new tools for ‘Ask Me Anything,’ its Q&A feature

Here are quick hits of the biggest news from the keynote as they are announced.

Google I/O 2024: Here’s everything Google just announced

LearnLM is already powering features across Google products, including in YouTube, Google’s Gemini apps, Google Search and Google Classroom.

LearnLM is Google’s new family of AI models for education

The official launch comes almost a year after YouTube began experimenting with AI-generated quizzes on its mobile app. 

Google is bringing AI-generated quizzes to academic videos on YouTube

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The keynote kicks off at 10 a.m. PT on Tuesday and will offer glimpses into the latest versions of Android, Wear OS and Android TV.

Google I/O 2024: Watch all of the AI, Android reveals