Current issues over electronic commerce in Brazil: vertical integration between platforms and payment systems, personal data protection and international regulatory cooperation
Keywords:electronic commerce, vertical integration, data protection, risks, Brazil
This article focuses on the trending issues about vertical integration between payment systems and the electronic commerce platforms from a Brazilian perspective. It describes the increasing international electronic commerce and it indicates three kinds of potential risks to consumers: direct, indirect and social. It shows that vertical integration can bring some benefits, which are very difficult to measure due to the related risks. The article creates a model of the remote commerce based on an evolution of a typology of typical trade relations to shed some light over the current automatization. Afterwards, the article states that the leakage of personal information coupled with vertical integration is a major threat to electronic businesses. It describes two international cases of mass data leakage to demonstrate the difficulties faced by the national systems in regulating transnational electronic commerce and data protection. Then, the article performs an assessment of the Brazilian legal system to conclude that there is a grave lack of integration of the electronic commerce regulations and that there is an absence of international cooperation provisions designed for electronic commerce. It concludes that Brazilian law may benefit from international experiences of personal data protection, and that the new legal provisions must take in account the risks associated with internationalization and vertical integration.