Some practices of these Big Techs are under investigation by the regulator.
A public hearing held at the Administrative Council for Economic Defense (CADE) on Wednesday (19) was marked by a series of criticisms from companies and associations aimed at the operating systems of Apple and Google. Some practices of these companies are under investigation by the Brazilian antitrust watchdog.
The CADE heard from various representatives to discuss the digital ecosystems related to the iOS and Android operating systems, including executives from Apple and Google, respectively. While the companies defended their systems and denied anticompetitive practices, associations of competitors echoed the accusations.
The hearing was convened at a time when the authority has been expanding investigations against “Big Techs,” as reported by Valor, but sees some of its decisions being challenged and even overturned in the courts.
Additionally, the Lula administration is expected to soon send a bill to Congress to regulate Big Techs in Brazil, proposing the CADE as the responsible body for overseeing major digital players. The text will also suggest a preemptive regulation (ex-ante), similar to the model in the European Union, which is strongly criticized by the regulated companies.
Apple was the first company to speak at Wednesday’s hearing. Pedro Pace, Apple’s chief legal officer, praised the company’s operating system, defended the peculiarities that justify charging certain fees, and urged the CADE to exercise caution in analyzing anticompetitive conduct.
“Any regulatory intervention through competition laws must be tailored, considering the needs of users and companies,”
said the executive, who also sent indirect messages to the government, which is drafting the proposal.
According to Mr. Pace, it is essential to avoid the “creation or importation of a foreign regime that inhibits Apple’s capability or harms the digital economy.”
At the end of December, the Federal Court of the Federal District overturned a preventive measure imposed by the CADE’s General Superintendence on Apple in the context of an investigation into alleged abuse of dominant position in the app distribution market for devices with the iOS system. The investigation was initiated following a complaint from Mercado Pago.
Source: Valor International
