Government proposes a new division to oversee digital platforms and ensure fair competition.
Brazil’s current Antitrust Law has failed to ensure fair competition in big-tech markets, according to Marcos Pinto, secretary for economic reforms at the Finance Ministry. He mentioned that the need for a specific regulatory framework for the sector — focused on creating equal competitive conditions — has become one of the few policy issues that unites both the political left and right.
“This is not a topic that divides the right and the left on the ideological spectrum. Both value the core foundations of the economy, which are competition and free enterprise,” Mr. Pinto said. “We are trying to protect a value that is fundamental to both sides—freedom of choice, free initiative, and free competition.”
He made the comments during a lunch hosted by the Parliamentary Front for Commerce and Services to discuss the bill sent by the government to Congress in September. The proposal enhances the role of Brazil’s Administrative Council for Economic Defense (CADE), the country’s antitrust watchdog, in regulating digital platforms and big-tech companies.
According to Mr. Pinto, digital platforms have expanded into neighboring markets, increasing productivity but also raising the risk of anticompetitive practices. He mentioned that traditional antitrust tools are no longer sufficient to keep up with these rapid changes, as they are usually used only after harm has already happened — highlighting the need for a specialized framework.
“Our goal isn’t to make it harder for big techs to compete — it’s to enable all companies to compete with them on equal footing. That’s the ideal at the core of the capitalist system,”
he said. The current situation, he added, also hurts commerce and service companies. For example, some firms now pay more for digital advertising and, as a result, lose effectiveness and sales opportunities.
The government’s bill proposes establishing a new superintendency within CADE, with authority similar to its General Superintendence but solely focused on digital markets. The division’s leader would be appointed by the president and approved by the Senate, leading a dedicated team to monitor and investigate the sector.
Under the bill, companies may be designated by the CADE if they have annual revenue above $5 billion in Brazil or $50 billion globally, and exhibit typical characteristics of major digital platforms — such as network effects, rapid scalability, and cross-sector integration.
Being designated, however, does not automatically impose obligations but places companies under closer scrutiny. The process unfolds in two stages: first, the designation; second, the potential imposition of commitments. Cases are deliberated in the CADE’s plenary, with companies heard during proceedings. The CADE may impose specific remedies chosen from a “menu” of obligations defined by law, following administrative procedures.
Possible obligations include banning self-preferencing — when a platform favors its own products or services — and banning exclusivity agreements that block new market entrants. Unlike in the European Union, where designation automatically triggers a set of rules, Brazil’s approach favors flexibility and case-by-case reviews. Companies that do not comply could face penalties under existing antitrust laws.
Source: Valor International
