The Attorney General’s Office (PGR) favored Anatel’s decision to include direct channel applications such as Value Added Services (SVA). This category has no obligations under the Pay TV Act (SeAC) and allows the operation of pay TV channels using IPTV technology.
The direct action of the unlawful act is proposed by Bravi (Brazilian Association of Independent Television Producers) and is still subject to judgment by the Federal Supreme Court. The entity claims that the differential treatment of online channels violates the principles of tax equality and wants submitting an IPTV application to follow the same rules as SeAC, both from a legal and tax standpoint. .
The Attorney General of the Republic, Augusto Aras, expressed himself in contrast to Bravi: for him, “the replacement of the specialist body does not depend on the Judiciary to establish a technical solution, penalty for infringing on the area reserved for entity regulation and (…) Confronted with the principle of division according to functions of Power ”.
Anatel’s permission to linear channels on the internet took place over a long period of time, and arose from Claro’s complaint against the Fox application, which was marketed to subscribers without an intermediary operator. The agency initially accepted tele’s appeal and banned television stations from selling direct. After many appeals and directives, Anatel’s board finally gave in and released TV Linear over the Internet (TVLAI).
Following the agency’s decision, new IPTV services with pay TV channels appeared in Brazil, such as Claro Box TV, DirecTV Go, Oi Play and Globoplay + live channels.
Producers fear that IPTV will cause a loss to the industry
SeAC law requires the download of channels of public interest on pay TV (TV Câmara, TV Senado, TV Brasil, etc.) and requires a minimum national content quota. The bulk move from traditional pay TV to the Internet could have an impact on Brazilian audiovisual production. The lack of regulation of the internet affects entities like Bravi, which try to block Anatel’s understanding.
On the other hand, the loss of revenue was also deemed dissatisfied by some members of Congress: while traditional services need to pay ICMS (exceeding 30%, depending on the state), online platforms taxed with the ISS, with a maximum rate of 5%. There is already a draft legislative decree to block television services over streaming.
The problem doesn’t end there: Anatel and the Ministry of Communications have to prepare proposals to amend the SeAC law. What the changes are about is not yet known, and it remains to be seen whether the reform will simplify rules or raise taxes, in order to bring streaming platforms into regulation.
With information: Teletime