Oi! It's definitely true in the spirit of things. It may very well be so that business may actually shut down in smaller cities. But in the larger cities, it's not so much that business officially shut down. What happens is that everyone retreats to a place where they can watch the games. So, especially for important games, if you go out in the streets, they will literally be deserted! Why? Everyone is home or somewhere watching the game! So what do you do if you are traveling, and find yourself alone in the street? Go to the first corner Bar you find, and it will be crammed with people watching the game, cheering, being merry (that is, if Brazil is winning or still has a chance of winning), drinking beer or cafezinho, and eating.
For the sake of humor, what do you do if you're too lazy to go find a Bar? You stand right where you are, and eventually you're bound to hear a deafening "GOALLLLLLLLLLLLLLLLL!!!!!!!!!!!" :P , or, a blast of intoxicating Brazilian music made up of samba instruments, such as hand drums, wistle, etc - all you have to do is follow the magical sound!!!
Hmmm... have I failed to mention that I'm crazy about Brazilian soccer???
Anyhow, as if I haven't rambled on long enough, I have to mention this, Brazilian music is everywhere and I'm drawn to it like a magnet! Just came back from Europe, and I was plesantly surprised numerous times by Brazilian live music and capoeira street performances! The only pity is that I wasn't able to watch Ronaldinho and Bekham play live in Madrid and Barcelona...
Couldn't afford the ticket...
So I treated myself instead to Gilbert Gil's new CD a la Bob Marley! :D Tchau!