A CADE board member recognized the challenge of closely monitoring Big Tech without restricting innovation.
Councilor Camila Cabral Pires Alves of CADE acknowledged the complex challenge of scrutinizing Big Tech companies in Brazil and advocated a flexible regulatory approach to ensure that innovation is not harmed but competition is protected.
She said in a webinar of the University of São Paulo that the regulatory environment must be flexible as a whole, not only in competition.
“We need flexible regulatory mechanisms, with clearly defined obligations that take into account both the service itself and the specific gatekeepers," she said. "It’s becoming necessary to understand that the object of regulation, or the competition issues that come before the authority, are specific and diverse.”
Councilor Alves also emphasized the importance of ongoing conversation with all stakeholders, from startups to Big Techs, in order to shape a flexible ex-ante regulatory framework.
“We also need input from all the actors that orbit within this ecosystem. Developers must have their own channels of expression, and the Big Techs themselves need clearly defined spaces to contribute and help build more critical mass,”
Pires Alves said.
Her words align with CADE's interest in becoming the agency responsible for ruling on competition among the largest tech companies. In late 2024, the Ministry of Finance released a report showing that the watchdog is capable of combating anti-competitive practices through increased enforcement in digital markets.
While the discussions are still in the early days, the ministry initiated the discussions by suggesting the creation of a new specialized unit within the competition authority to enhance competition among tech companies. The unit would monitor digital markets, designate economic agents, establish and oversee obligations, and investigate potential violations.
Pires Alves appeared in the online event alongside her colleague, Councilor Victor Oliveira Fernandes. He referenced the Google Shopping probe initiated by CADE in 2011, which was closed after several years of investigation.
In that case, Google was accused of favoring its own websites in organic search results to the detriment of its competitors. In 2019, the Tribunal dismissed the case due to lack of evidence. However, the European Commission convicted the tech giant for similar practices in a parallel investigation.
Fernandes said the abuse of dominant power, as carried out by Google Shopping in Europe, is a subject of further discussions as Brazil scrutinizes Big Tech companies.
“CADE's decision was to close the case, as it was understood that there was not enough evidence to meet the threshold for demonstrating anticompetitive effects,”
he said.
Source: MLex
