The Brazilian Ministry of Finance has released a report focusing on digital regulation, following a consultation on the economic and competitive aspects of digital platforms. Earlier this year, the Computer & Communications Industry Association (CCIA) submitted comments on the issue.
Continuing its involvement in Brazilian competition and regulatory matters, CCIA Vice President of Global Competition and Regulatory Policy Krisztian Katona participated in discussions last year during the Brazilian Chamber of Deputies’ Economic Development Commission hearing on Bill No. 2768/2022, known as the “Brazilian DMA proposal.” The CCIA also provided feedback to the Brazilian Congress during a public consultation on this bill in December 2023.
The Ministry's report recommends antitrust reform and suggests specific measures to address competition concerns in digital markets. It highlights potential risks from exclusivity agreements, "killer acquisitions," and self-preferencing practices, suggesting that these may require new regulatory tools.
The proposed reforms would enable CADE, Brazil’s competition authority, to classify certain digital platforms as “systemically relevant” based on various criteria. Once classified, CADE could investigate these companies and impose new preemptive obligations. The government is expected to present legislative amendments to Congress by year-end.
Krisztian Katona stated: “CCIA welcomes the Ministry of Finance’s in-depth examination of the competitive dynamics in Brazil’s digital markets and study of regulatory proposals in other jurisdictions. Were a new Brazilian digital regulatory framework introduced, we would agree that the designated authority should be CADE, the expert agency for competition issues."
He further noted: “It is worth noting that the few existing international ex-ante digital frameworks are still regulatory experiments, and their initial results raise several questions as to their impact on innovation, investment, and economic growth. A key question regarding any regulation is whether it is principles-based, and implemented in a reasonable and proportionate way. For an economy with such a thriving innovation and startup ecosystem, including its dynamic fintech space, it will be particularly important for Brazil to ‘get it right’ and to preserve a robust and competitive economy.”
