Legal Framework for the Electronic Games Industry

On May 6, 2024, the Federal Government published Federal Law No. 14.852/2024, which established the Legal Framework for the Electronic Games Industry in Brazil. As a result, the manufacture, import, marketing, development and commercial use of electronic games in the country will be regulated by the new law.

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Federal Law No. 14.852/2024 foresees basic principles and rules on the development and sale of electronic games in Brazil. It establishes guidelines on the manufacture, import, marketing, development and commercial use of electronic games, in addition to providing that the State must establish the indicative age classification. Therefore, provides a specific framework for this sector in Brazil and ensure the protection of its consumers and users.

The Legal Framework for the Electronic Games Industry also establishes as principles and guidelines the recognition of the sector as a vector for economic, social, environmental and cultural development, the need to protect consumers, children and teenagers in the electronic games environment, the preservation of privacy, the protection of personal data and user self-determination.

Among the guidelines mentioned, the new law also provides for the use of electronic games beyond entertainment, i.e. for educational purposes in school environments, therapeutic purposes, training purposes in institutional environments, as well as media and advertising purposes.

The law also specifies that the management and operation of electronic games must be based on the best interests of children and teenagers and ensure that the systems developed do not foster or create an environment conducive to violence, exploitation and any kind of discrimination or neglect. In addition, the new law points to the need to implement measures that guarantee universal design and accessibility for children and teenagers with disabilities when accessing electronic games.

In addition, the conception, design, management and operation of electronic games accessed by children and teenagers must be based on the interests of this age group, and games with interaction must guarantee the application of safeguards, such as a system for receiving complaints.

It will be up to the State to establish the indicative age classification of games, taking into account the risks related to digital purchases in the context of games, which can stimulate unbridled consumption in children.

As for taxation aspects, Federal Law No. 14.852/2024 estipulates that: (i) the electronic games industry will have incentives similar to those applicable to the cultural sector under the Rouanet Law – which aims to incentivize cultural activities in Brazil – and the Audiovisual Law – that aims to incentivize the national movie industry; (ii) the government will regulate customs clearance and import taxes for games, with a view to fostering innovation in the sector; (iii) individual entrepreneurs and individual micro-entrepreneurs (“MEIs” in Portuguese) who develop electronic games will have special treatment (which will be regulated at a later date).

Our Consumer, Technology and Tax teams are available to assist and discuss the potential impacts of the new law.

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