Data Protection Law Advances in Brazil; Dentsu Acquires Pontomobi
This week’s LATAM RoundUp brings these stories: a Brazilian data protection law is approved in the first stage of voting and can change the way online companies operate in the country; e.Bricks, mobile advertising company that is part of RBS Group, acquires Hands ad network; and Dentsu Aegis acquires mobile company Pontomobi, its fourth acquisition in Brazil in less than two years.
User data privacy law moving in Brazilian Congress
Last Tuesday (12 October), the Science, Technology, Innovation, Communication, and Informatics Commission of the Brazilian Congress approved the law to regulate personal data usage by internet companies. The rules were discussed in front of public audiences and 29 amendments were made — which would impact the way publishers and other media companies collect, use, and provide online user data.
Yet, there will be another three stages of voting before the regulation can finally be put in practice. This means other changes can still be made.
For now, the main objective of the rule, according to Brazilian Congress, is to ensure that the online audience is informed about how their data will be gathered when they go online. The law also allows people to deny providing certain information, as well as to ask each online service that has been collecting and using their data to provide history logs of what they have been storing.
The companies that don’t follow the regulation, if approved, will be punished with fines that can go to up to 5% of their revenue. They can also be banned from using their datasets for an unlimited period of time.
Hands ad network: new shareholding
Hands, the mobile ad network part of RBS Group, announced a spin-off. This way, e.Bricks, the financial investment branch of the same group, acquires the shares from four stakeholders (Leo Xavier, Renato Virgule, Flavia Biasotto, and Terence Reis).
The operation also means that Hands is not part of Pontomobi anymore, being now an independent mobile ad company controlled by e.Bricks. In the past year, the company has been growing its revenue by 50%.
The executive team remains with João Carvalho, as a CEO, and Sergio Percope, as chief growth officer.
Pontomobi: A Dentsu Aegis’ company
Pontomobi, Brazilian mobile advertising company with offices in Sao Paulo and Belo Horizonte, was acquired by Dentsu Aegis. The transaction price was not disclosed. The company was part of Grupo RBS, which had 60% of its shares. Hands’ spin off contributed to this transaction happening.
Although Dentsu bought 100% of Pontomobi’s shares, the company’s leadership remains with Léo Xavier. According to a press release, Dentsu Aegis’ plan is to keep expanding their presence in Brazil, despite the weaker local economic situation. The company has been acquiring Brazilian companies in the past year: NBS agency, OOH Plus, and Redirect marketing agency are some of them.
Pontomobi was founded in 2007 with a focus on SMS and bluetooth marketing.
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