Brazil is proposing reforms to tighten antitrust regulations for big tech companies
The Brazilian government on Thursday recommended a reform of the competition law, which would allow antitrust authority CADE to designate certain digital platforms as systemically important and subject them to new obligations if necessary.
Why it’s important
Brazil’s Finance Ministry says local legislation must be equipped with more tools to address a new reality in which big tech companies, due to their size and market power, are hindering competition.
The government reports practices such as exclusivity agreements, “killer acquisitions” and self-preference, in which a company’s own products or services appear first in Internet searches.
Details
New requirements include pre-merger notices, transparency rules for end users and businesses regarding commercially relevant information about the use and offering of services and products, and a mandate to publicly disclose changes to the terms of services or terms.
Additional background
The government said the proposed law change is a middle ground between the US and European Union (EU) models for regulating large technology platforms, inspired by practices from Japan, the United Kingdom and Germany.
What’s next
For the changes to take effect, the government must decide whether to submit the recommendations to Congress as a new bill, or introduce a replacement text that could be incorporated into an existing legislative proposal already under consideration.
Key quotes
“What we are proposing here is very reasonable and balanced,” Economic Reforms Minister Marcos Pinto said at a news conference, adding that he predicts action will be taken on the issue by the end of this year.
“Our goal is not to hinder innovation, impose unnecessary costs or create bureaucracy where it is not needed. What we want is to maintain a fundamental value in the economy, namely competition.”
© Thomson Reuters 2024
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