U.S. Ruling Strikes Down Net Neutrality: What Does This Mean for Brazil?
The recent decision by the U.S. Court of Appeals to overturn the FCC’s net neutrality rules sets a dangerous precedent with global implications. This ruling not only weakens consumer protections against discriminatory practices by Internet providers in the U.S. but also signals a shift that regulators in other countries—including Brazil—may seek to leverage.
In the U.S., the court’s decision was based on rejecting the principle of regulatory deference, limiting the FCC’s authority to classify Internet providers as essential services. This victory for major American telecom companies echoes the long-standing ambitions of Brazilian operators, who have been pushing for policies like network fees or “fair share.” These proposals claim to finance digital infrastructure expansion by shifting costs onto content providers, but in reality, they promote double charging and market concentration.
Brazil’s Anatel has already shown interest in similar measures, as seen in its draft bill proposing broader regulatory oversight of the digital ecosystem, including content delivery networks. The weakening of net neutrality in the U.S., combined with this regulatory expansion, could strengthen arguments for an “Internet toll” in Brazil.
However, studies and impact analyses, from the Ministry of Finance and the Internet Impact Report, confirm that there is no evidence supporting such measures. Implementing Fair Share would not only violate net neutrality but also create artificial subsidies that drive up costs for small providers and startups, stifling innovation and competition in the digital market while increasing prices for end users. This makes Bill No. 469/2024, currently advancing in Congress, a crucial step in permanently blocking these attempts.
While the U.S. court ruling marks a major setback for an open and free Internet, several states have enacted their own net neutrality protections, and members of Congress continue to push for federal legislation on the matter. Brazil, in contrast, has been a global leader on this issue, having enshrined net neutrality in law through the Marco Civil da Internet (“The Brazilian Civil Rights Framework for the Internet”).
As major telecom companies celebrate the U.S. decision, it is essential for civil society, lawmakers, and Anatel to consider the risks of adopting models that prioritize corporate interests over an Internet that is open, fair, and accessible to all. Network fee proposals do nothing to address Brazil’s real connectivity challenges and should be unequivocally rejected.