New Privacy Regulations Aiding, and Stunting, Brazil’s Legal Tech Market
It’s an exciting time to be in the legal tech or e-discovery service provider sector in Brazil—or is it? With uncertainty still clouding the future of the country’s General Data Privacy Law (LGPD), it may be a long while until the effects on the developing legal tech marketplace begin to crystalize.
As of now, the LGDP is set to go into effect in August 2020 and is expected to impactbusinesses in many of the same ways that the European Union’s General Data Protection Regulation did when it was launched last May.
Among other things, the LGDP requires any foreign entity operating in Brazil or offering services to Brazilian consumers to get consent before collecting personal information and mandates they meet certain transparency and data protection standards.
Andrew Johnston, senior managing director of FTI Consulting Inc., cited a lack of clarity surrounding how the law will be implemented and who will be doing the enforcing as challenges facing companies attempting to comply.
“A lot of the uncertainty that businesses are facing with this law also present themselves to the professional services providers. I don’t know that there’ll be a lot of new providers in the market until a lot of that comes to light,” Johnston said.
Not that it will preclude anyone from trying, though. Earlier this week, FTI announced that it was expanding its partnership with Relativity in order to offer the RelativityOne e-discovery platform in Brazil. Johnston framed the decision strategically, citing both an ongoing partnership with Relativity and the growth the firm has seen in the region.
Last August, FTI showed additional interest in the South American legal market through a partnership between its document review software provider Ringtail and the Chilean managed legal services Seal Legal Forensics. Ringtail was acquired by Nuix the following month, but FTI still maintains an active presence in South America, including data processing, review and analytics services.
Johnston said that local companies in Brazil are looking to ramp up their compliance and information governance work ahead of the LGPD and FTI’s services in the region will be geared toward addressing those needs.