On Wednesday, 11th, at the Chamber of Deputies, the Brazilian Association of Radio and Television Companies ( ABERT ), the National Association of Newspapers ( ANJ ) and the Brazilian Association of Internet Access Providers ( ABRANET ) supported an upper limit of 30% for foreign ownership of companies that generate journalistic content for internet.

According to the three entities, Brazilian Constitution item 222 states such restriction to foreign capital and it should be applied to any business related to content generation, no matter what is the chosen midia: TV, Radio, Newspaper or Internet. The issue was discussed at a public hearing of the Committee on Science and Technology, Communications and Computer Sciences.

Such understanding carries an intention of preserving Brazilian culture and nationality. Besides a 70% Brazilian capital ownership, company control and content production should be exclusive attributes for a born or a minimum of 10 years naturalized brazilian citizen.

''Nobody wants to control the free flow of information and ideas but we want to protect national sovereignty and culture. That was the intention of the law that also exists in other countries'' stated Luís Roberto Barroso, a constitutionalist attorney and speaker of ABERT at the debate.

Geography
The Director-President of the Center of Information and Coordination of Ponto BR (NIC.br), Demi Getschko, said that maybe it is not possible to formulate and to enforce such kind of law for internet. He is also member of the Brazilian Internet Management Committee (CGI.br) and his fear is that one tries to apply such decisions through web access and physical restrictions.

According to him, besides breaking internet development principles, the web technical features prevent such restrictions since it is not possible to geographically locate an internet portal.

A content portal can be managed by journalists, or by a bakery, a butchery, any store, real people or companies, and it can be a colective work with no need of previous registration. ''In the real world, it is obviously a news company but it is hard to define precisely what is an internet journalistic portal. An analogy is not possible because the web follows different logics'', he explained.

The Legal Adviser of the Ministry of Communications, Marcelo Bechara, reinforced that the issue at stake is not ''internet regulation'', a subject that would scare users. ''Gambling is not allowed in Brazil but everyday thousands of people gamble at virtual casinos and trying to forbid it would be the same'', he examplified.

Business
Associations support a restrictions free internet. Their point is that news business companies should follow same rules, no matter the midia. "Anyone is able to produce internet news but this is not what we are talking about. We are talking about real, not virtual companies, in an organized business to generate news and make profits with it'', stated Tércio Ferraz, a professor of the University of São Paulo Law School and ANJ speaker at the debate.

It is not hard to figure out a company breaking such rule, once it is settled at another country and generates content in portuguese language, targeting Brazilian audience. We cannot ignore a rule just because its applicability is not simple, stated Roberto Barroso. ''Besides, I think that journalistic production about Brazil is not easy without an operation office and professionals in Brazil, what leads the company to be located here'', he said.

New Reality
For Deputy Júlio Semeghini (PSDB-SP), the companies' concern is natural. Bill 29/07, that legislates on digital convergence and rules on Internet or Telephone companies presence at Cable TV market, shows a concern that companies with heavy participation of foreign capital would start to produce journalistic content. ''Up to the moment the understanding is that they are not allowed to and if necessary we will change legislation to make it clear'', he said.

For the rapporteur for Bill 29/07 in the Committee, Deputy Paulo Henrique Lustosa (PMDB-CE), a complete opening of the capital of news companies can be discussed but as far as there is a restriction, it applies to all of them. '' We certainly don't want to censor or stop the information flow but just to protect Brazilian culture'', he said.

As there are two possible interpretations for such capital restriction - one which understands that it applies to internet and another which sustains that the web requires a more updated regulation, the president of the Committee on Science and Technology, Communications and Computer Sciences, Deputy Eduardo Gomes (PSDB-TO), said that today hearing can start new legislation on the issue. '' We are facing a new reality and we have to check if laws are already fitting it''. There are no projects on the issue pending before the Chamber to date.

Reporting - Marcello Larcher
Edition - Wilson Silveira
Translation – José B. Schneider