Brazil Consider Imposing Tough Data Requirements on Internet Companies

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Brazil is on the verge of passing an internet privacy bill which will require all internet companies to store their data in the country. The bill, if passed into law, will see internet companies shift their data storage from servers abroad to servers in the country. This bill comes in the wake of revelations that the NSA has been spying on President Dilma Rousseff and members of her administration.

The bill has come under sharp criticism by internet companies who argue that the cost of doing business in Brazil will rise because of the costs involved in building data storage facilities in the country. The companies which are drawn from the US, Japan, Canada and Europe sent a letter to the Brazilian Congress last week urging it to shoot down the bill before it is passed into law.

Internet services providers in Brazil argue that they will have to sacrifice large portions of their revenues in order to comply with this rule if it becomes a law. On its part, the Brazilian government argues that these companies can afford to build without a huge loss of revenue. The government is also considering helping smaller companies meet the expense of building these data storage centers.

Internet experts also warn that by passing this bill, Brazil will effectively slow down its internet sector and gradually the whole industry will become untenable and grind into a halt, affecting the economy badly. Experts also argue that by having all data held in the country, and therefore subject to Brazilian laws, the government can demand for and get any data they want. This means that Brazil would easily be able t pull off a PRISM of its own if it wanted.

From a security point of view, having servers in Brazil will probably make these ISPs vulnerable to sabotage since the physical location of their servers will be an open secret.

We all wait to see how this will play out. The government means well but the measures it is taking look reactionary and when considered, they may bring long term problems to the internet sector. Remember, if you wish to stay away from snooping eyes online, we always recommend that you get a VPN subscription from a provider like Hide My Ass. That way you do not have to rely on your government to pass laws that may end up hurting your economy.