Technology and the law in Brazil: trends, challenges and opportunities in 2026

2025 saw a significant transformation within Brazil’s technology sector. New regulations, paradigm-shifting court decisions, and rapid advancements in technology combined to change obligations, speed up structural changes, and increase the legal complexity that companies in the industry face.

In this article, our experts examine the key milestones of 2025 and the issues likely to shape the legal and regulatory landscape in 2026. This year’s outlook demands that organizations not only keep pace with technological developments but also maintain an ongoing commitment to adaptation, governance, and risk management amid regulatory consolidation and growing regulatory maturity.

Internet app providers’ civil liability for third-party content

In June 2025, Brazil’s Federal Supreme Court (STF) issued a landmark ruling on the civil liability of internet app providers for third-party content. The ruling focused on Article 19 of the Brazilian Civil Rights Framework for the Internet (MCI), which links providers’ liability to their failure to comply with a specific court order.

After years of debate, the STF declared Article 19 to be partially unconstitutional. Upon publishing the ruling in November 2025, the court adjusted the prospective effects and established new liability limits, including for cases where non-compliance with a court order is not a prerequisite. The duty of care in situations involving widespread dissemination of serious illegal content is particularly important – providers will still be held liable when, due to systemic issues, they fail to promptly remove content that constitutes a serious crime, as provided for in Article 19. The court holding also established presumed liability in cases involving paid advertisements and promoted content, as well as in situations involving artificial distribution networks, allowing such presumptions to be rebutted upon proof of effective and prompt diligence.

• The original rule of Article 19 remains applicable to providers of e-mail services, apps primarily used for closed video or voice meetings, and instant messaging services used in interpersonal communications.

In addition, the court ruled that providers operating in Brazil must have an office in the country, as well as a locally based representative whose identity and contact details must be readily accessible on the company’s website. They must also have the authority to respond to administrative and judicial cases, provide information on content moderation, comply with orders, and accept penalties.

The effects of the decision apply prospectively, except in cases where a final and unappealable decision has been made. Although the ruling has yet to become final, the established holding will influence how the courts interpret the MCI in specific cases throughout 2026.

Digital ECA: new obligations for protecting minors online

Law No. 15,211/2025 – known as the Digital Statute for Children and Adolescents (Digital ECA) – was enacted in Brazil in September 2025. It sets out rules to protect minors online, covering the use of apps, electronic games, social networks, and computer programs. The law requires technology providers to take steps such as implementing technical measures to prevent inappropriate access, setting more protective default privacy and data settings, evaluating content based on age groups, and creating systems to block content that is illegal, pornographic, or clearly inappropriate.

Despite the scope of the law and its numerous requirements, the grace period for adaptation determined in Provisional Measure No. 1,319/2025 lasted only six months, meaning the Digital ECA comes into effect in March 2026. This short timeframe presents a significant challenge, compounded by the lack of clear definitions for key terms in the law that are supposed to guide companies, such as ‘probable access’ and obligations related to age verification. Meanwhile, Decree No. 12,622/2025 has appointed the Brazilian Data Protection Agency (ANPD) as the administrative authority responsible for enforcing the statute, and has also established procedures for complying with judicial blocking orders, in coordination with other institutions.

Data Protection Agency: new role and expectations for 2026

At the end of 2025, Brazil’s Data Protection Agency (ANPD) released updates to its 2025-2026 Regulatory Agenda and 2026-2027 Priority Topic Map, two documents that set out the main activities the agency will address throughout 2026.

The map outlines four priority areas for enforcement:

• The rights of data subjects;
• Personal data processing of minors in digital spaces;
• Data processing by the Brazilian government; and
• Personal data processing in relation to artificial intelligence and emerging technologies.

These topics reflect areas of higher risk identified from past incidents, requirements, and inspections. Planned actions include monitoring the secondary use of personal data (focusing on biometric, health, and financial data) as well as measures to prevent minors from accessing inappropriate content. The ANPD will combine its ongoing oversight, guidance, and prevention efforts, with schedules that can be adapted based on regulatory developments.

The ANPD plans to implement Digital ECA enforcement in stages. In 2026, it will start monitoring whether companies are meeting the new requirements and begin inspections to protect the rights and data of minors. More rigorous inspection measures, such as those regarding the existence of age verification mechanisms and parental supervision tools, will occur from 2027. The ANPD’s Regulatory Agenda includes three new topics linked to the Digital ECA – age verification mechanisms; defining the scope and obligations for technology providers; and revising the oversight and penalty framework, including updates to Resolutions No. 1/2021 and No. 4/2023.

Two other recent events are likely to shape the data protection landscape in Brazil in 2026. The first is Provisional Measure No. 1,317/2025, which confers the status of regulatory agency upon the ANPD − ensuring it has operational, technical, decision-making, administrative, and financial independence. This measure also establishes specific career paths for regulatory and oversight roles in relation to data protection and has already been approved in Brazil’s Senate, awaiting only presidential approval. Second, Brazil and the European Union have approved a mutual adequacy decision in data protection (formalized by CD/ANPD Resolution No. 32/2026 and an equivalent act by the European Commission). As a result, transferring personal data between Brazil and the European Union/European Economic Area generally no longer requires additional instruments like standard contractual clauses. However, there are still exceptions provided for in the Brazilian General Data Protection Law (LGPD) for purposes such as public security, national defense, state security, or criminal investigations, and controllers are still ultimately responsible for security and accountability measures.

Regulation of AI: the evolution of Bill No. 2,338/2023

The main bill for regulating the development, implementation, and use of AI systems in Brazil – Bill No. 2,338/2023 − was subject to intense debate in the House of Representatives in 2025 after being approved in the Senate in December 2024. The bill aims to create a comprehensive regulatory framework for AI systems, adopting a risk-based approach that prioritizes protecting fundamental rights, responsible innovation, and legal certainty. Among the main topics subject to public debate are issues related to copyright and the protections for artists amid the increasing availability of generative AI tools on the market.

The version of the bill approved by the Senate aims to balance the rights of artists, the interests of technology companies, and the public interest, while providing solutions for the use of protected works in training AI tools. The bill suggests that developers must be transparent about all training involving protected works, specifying the content used (within the limits of protecting trade secrets and technical feasibility) to the rights holders, as well as including opt-out and compensation mechanisms. The bill currently remains under review in the House, with legal and technical debates ongoing in specialized committees.

Streaming regulations in Brazil

The streaming sector in Brazil experienced significant changes in 2025. Regarding taxation, the STF upheld a ruling declaring constitutional the expansion of the calculation base for taxes on foreign remittances related to technology, licenses, and technical services, which could lead to an increased tax burden on international video-on-demand platforms.

Meanwhile, bills to regulate streaming services advanced in Brazil’s Congress, paving the way for new rules to be published in 2026. After multiple reviews in both houses, a substitute version of  Bill No. 2,331/2022 was finally approved by the House of Representatives and passed on to the Senate. Given that it is a substitute version of the original text, the Senate may approve or reject the differences and send it directly to the president to veto, without further review by the House. Key obligations would include:

• The levy of CONDECINE (a federal contribution tax used to support Brazil’s cinema industry) at a rate ranging from 0% to 4%, depending on the service;
• Requirements to prioritize the display of Brazilian content on streaming platforms; and
• Exclusive theatrical windows for films released in cinemas.

Moreover, the Brazilian Telecommunications Agency (Anatel) has exempted pay TV providers (Serviços de Acesso Condicionado) from certain regulatory obligations, such as requirements to meet quality standards, conduct satisfaction surveys, and report activities to Anatel. This initiative aims to balance competition between companies that provide streaming services and those providing telecommunications services. In 2026, Anatel is expected to review these regulations, which could end up affecting the streaming sector.

Supreme Court to decide on music publishing contracts

In 2026, the STF is expected to rule on a case (ARE No. 1.542.420) that is set to determine whether music licensing or publishing agreements originally made for works solely on analog formats will also cover digital platforms like streaming. With the investigation phase finished and the general repercussion principle already established, the court’s decision on the merits should clarify how older contracts are interpreted over time amid technological progress, and whether the lack of an explicit clause on digital use precludes the automatic extension of the original assignments. The STF will also need to assess the limits of contractual freedom and legal certainty in the face of significant technological change, as well as establish guidelines on transparency, accountability, and fair compensation for contracts signed before the advent of digital technologies such as streaming.

The decision will significantly affect the music industry, impacting renegotiations, payment structures, governance methods, and legal certainty in music licensing agreements, potentially changing how thousands of contracts signed before the digital age are interpreted.

Fixed-odds betting: consolidation of the regulatory framework

In the wake of the fixed-odds betting market recently becoming authorized in Brazil, 2025 saw major updates.

The Brazilian Ministry of Finance’s Secretariat of Prizes and Betting (SPA/MF) issued a series of regulatory updates addressing social and operational issues. Most notably, this included prohibiting beneficiaries of two social welfare programs (Bolsa Família and Benefício de Prestação Continuada) from registering on or using the betting system, procedures bettors can take to exclude themselves from the system, and processes that betting operators must follow when the conditions of their authorization change.

The SPA/MF also released its 2025-2026 Regulatory Agenda, organizing initiatives into quarterly cycles. In 2026, the agenda includes a review of authorization and oversight procedures, rules for running physical betting terminals, guidelines for affiliate advertising, and improvements to the penalty framework.

In an effort to fight illegal betting operators, Supplementary Law No. 224 was enacted to establish joint and several liability for third parties regarding the collection of taxes on illegal fixed-odds betting operations, especially for:

• Financial, payment, and settlor institutions that, after being formally notified by the competent federal authorities, fail to take measures to restrict transactions associated with fixed-odds betting conducted by unauthorized operators;
• Individuals or legal entities that publicize or disseminate the commercial advertisements of unauthorized operating agents.

In 2026, the focus is expected to be on strengthening regulations in the sector, especially in regard to consumer protection and illegal operators.

Predictive markets

The recent emergence of predictive market platforms represents an innovative technological challenge. These platforms enable users to enter into contracts based on predicting whether a specific event will occur in the future. The predictions are binary – in other words, users simply indicate ‘yes’ or ‘no’ without any conditions. The range of events that can be the subject of these predictions is extremely broad, with platforms typically accepting events ranging from the possibility of rain on a particular day to who will win a given election.

The importance of predictive markets has rapidly risen in significance lately, especially as they have been shown to be impressively accurate in forecasting political, economic, and social events, forming a sort of ‘data hub’.

Brazil’s regulatory scenario for this issue is marked by uncertainty, with no specific regulations in place at present. Depending on how the practical features of these platforms develop and the discussions that emerge in 2026, certain factors could bring the predictive market closer to both derivatives and fixed-odds betting in Brazil. As such, companies involved or interested in this activity should monitor developments closely.

The telecommunications sector: Anatel’s regulatory outlook

Infrastructure, fighting piracy, and implementing new technologies are the key topics that Brazil’s telecommunications sector is expected to remain focused on in 2026. Anatel should continue working on infrastructure initiatives involving submarine cables and data centers that began last year, with the goal of finalizing procedures and guidelines for these areas. Brazil’s Ministry of Communications should also move forward with formalizing the National Submarine Cable Policy, helping to improve coordination between authorities and operators in expanding high-capacity networks.

There are two topics that should remain central to regulatory discussions on new technologies – the models for sharing costs associated with traffic (fair share), and the use of artificial intelligence in networks and services. Anatel is expected to progress in defining principles and parameters for these subjects, including guidelines for network automation, fraud prevention, and improving the user experience. These topics have already been incorporated into recent regulatory reviews and should guide additional updates in quality, licensing and infrastructure during 2026.

Next steps

For the technology sector, 2026 is shaping up to be a year of regulatory consolidation and the implementation of foundational legal and regulatory frameworks. New legal requirements, important court rulings, and regulatory agencies with greater powers will converge to have an impact, while an increasingly complex digital landscape will require organizations to take integrated, continued, and strategic approaches to compliance, governance, and risk management.

Mattos Filho’s Technology practice will continue to monitor this highly dynamic scenario, taking proactive steps to guide clients and identify opportunities arising from this rapidly evolving landscape. Yet the complexity of this current moment also signals potential opportunities: 2026 looks like it will be both a year of adaptation and one in which companies may be able to strategically position themselves to lead the next phase of Brazil’s digital transformation.

For more information on these topics, please contact Mattos Filho’s Technology practice.