Finance Ministry wants a superintendency within CADE (Brazil's antitrust agency) to regulate big tech and prevent digital monopolies.
The proposal presented to Lula includes specific rules for giants like Google, Apple, and Meta, inspired by models from Germany and the European Union.
247 - The Ministry of Finance presented President Luiz Inácio Lula da Silva (PT) with a proposal on Wednesday (13) to create a superintendency at Cade (Administrative Council for Economic Defense) dedicated to regulating competition in the big tech sector. The information was released by FSP, who had access to the draft of the preliminary bill discussed at the Presidential Palace.
Inspired by the German model and following guidelines announced in October 2024, the initiative seeks to curb predatory practices and protect national companies in the face of the advance of large digital platforms. The text provides for the creation of the Superintendency of Digital Markets within CADE (Brazil's antitrust authority), with the power to impose specific obligations on companies that exceed annual global gross revenue of R$ 50 billion or R$ 5 billion in Brazil.
Rules and prohibitions to prevent self-favoritism.
The proposal establishes that the promotion of competition should be guided by the competitive process and the user's freedom of choice. One of the points prohibits platforms from favoring their own products or services to the detriment of competitors, or from linking the purchase of one item to the acquisition of another.
Decisions regarding the classification of relevant companies and the imposition of obligations would be made collectively, as would the initiation of administrative proceedings. According to the government's assessment, between five and seven large companies operating in Brazil would meet the criteria, including names such as Alphabet (Google), Amazon, Apple, Booking, ByteDance (TikTok), Meta (Facebook and Instagram), and Microsoft.
Hybrid model between the US and the European Union.
The proposed regulation combines elements of the US system — which acts after violations have occurred — with the European approach, which imposes direct obligations on companies identified as dominant.
The discussion about regulating big tech companies gained momentum after US President Donald Trump announced a 50% increase in tariffs on Brazilian products, a measure the government links to the Supreme Court's ruling on the Marco Civil da Internet (Brazilian Internet Bill of Rights), which expanded the responsibilities of these companies. During an event at the Presidential Palace, Lula countered:
"He said he won't accept us regulating his big tech companies, but we will regulate them, because to be in Brazil, you have to be regulated. [...] There's only one way for a company not to want to be regulated in Brazil: not to be in Brazil."
Other measures under discussion
The meeting included eight ministers, including Fernando Haddad (Finance) and Ricardo Lewandowski (Justice). A draft prepared by the Ministry of Justice was also discussed, which expands the regulation of platforms, with rules for advertising, remuneration of influencers, and restrictions on children's and adolescents' access to social networks.
This proposal also envisions transforming the ANPD (National Data Protection Authority) into a regulatory agency with oversight powers. The government intends to capitalize on the mobilization generated by influencer Felca's warning about the "adultification" of children to expedite the bill's progress through Congress.
