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Brazil will now press for a new multilateral governing body for the internet.
The country also plans to present proposals to the UN to protect the privacy of electronic communication.
President Dilma Rousseff has said the incident would have ramifications on the EU-Mercosur trade talks.
President Dilma Rousseff proposed a national referendum at a meeting with Brazil's governors last week.
The government said the poor results were in part due to financial problems in developed countries.
Brazil's proposed referendum will ask the public to vote on a range of issues, including campaign financing and electoral reform.
Rousseff's government slipped eight points in the approval ratings from March to June to land at 55 per cent.
Rousseff announced political reforms would include harsher punishment for corruption.
The Brazilian president has said that the cost of hosting the World Cup will not be borne by taxpayers.
Protests are increasingly focused on the $13 billion cost of the World Cup and expenditure on the 2016 Olympics.
