Brazil authority suspends Meta's AI privacy policy, seeks adjustment

SAO PAULO (Reuters) - Brazil's National Data Protection Authority (ANPD) has decided to suspend with immediate effect the validity of Meta's new privacy policy for the use of personal data to train generative artificial intelligence systems in the country.

ANPD's preventive measure was published in Brazil's official gazette on Tuesday and puts on hold the processing of personal data across all Meta products, including those of people who are not users of the tech giant's platforms.

The authority, an arm of Brazil's Justice Ministry, set a daily fine of 50,000 reais ($8,836.58) in case of non-compliance.

ANPD cited in its decision the "imminent risk of serious and irreparable or difficult-to-repair damage to the fundamental rights of affected holders."

Meta will need to adapt its privacy policy to exclude the section related to the processing of personal data for generative AI training, according to the Brazilian authority. It will also be required to present an official statement saying it suspended the processing of personal data for that purpose.

Meta said in a statement that it was "disappointed" by ANPD's decision, adding that the move represents a "setback for innovation" and will delay the arrival of AI benefits to the people of Brazil.

"We are more transparent than many players in this industry who have used public content to train their models and products," Meta said. "Our approach complies with privacy laws and regulations in Brazil."

($1 = 5.6583 reais)

(Reporting by Paula Arend Laier; Editing by Anil D'Silva)