Brazil Proposes Competition Law Reforms for Major Digital Platforms

Brazil’s government on Thursday proposed changes to its competition law, granting antitrust authority CADE the power to designate certain digital platforms as systemically relevant, which would subject them to additional regulations if necessary.

The Finance Ministry highlighted the need to modernize local legislation to address the growing influence of big tech companies, whose size and market dominance may hinder competition. It cited concerns over practices like exclusivity agreements, “killer acquisitions,” and self-preferencing, where a company favours its products or services in search results.

The proposed changes include new measures such as pre-merger notification requirements, transparency rules for end-users and businesses regarding commercially significant information, and mandatory disclosure of changes to terms of service.

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The government explained that the proposal is a balanced approach, falling between U.S. and EU regulatory models, and drawing from best practices in Japan, the U.K., and Germany.

To implement the reform, the government will either submit a new bill to Congress or revise an existing legislative proposal.

“This is a reasonable and balanced proposal,” said Economic Reforms Secretary Marcos Pinto at a press conference, predicting movement by the end of the year.

“Our goal is not to stifle innovation or add unnecessary costs and bureaucracy. We aim to preserve competition, a fundamental value in the economy.”