The draft framework lands at a critical juncture both in establishing Brazil’s global influence in platform regulation and in the country’s relationship with the US Government
The Brazilian Government has proposed an ex-ante framework for regulating digital markets
On 17 September 2025, the Brazilian Government introduced to the legislature its draft Bill 4675/2025 on regulating digital competition. The legislation was drafted by the Secretariat of Economic Reforms of the Ministry of Finance (SRE-MF), which led a technical group of other agencies, including the Ministry of Justice and Public Security and the Attorney General’s Office, in researching the state of digital markets in the country. The Government noted that the framework takes direct inspiration from the ex-ante regulation implemented in other countries, particularly Germany, Japan and the UK, and international research on the digital economy, including from the Organisation for Economic Cooperation and Development (OECD). In discussing the necessity of the legislation, Marcos Pinto (Secretary of Economic Reforms, Ministry of Finance) stated that digital ecosystems, control over which has become increasingly centralised, are capable of having systemic impacts on the whole of the economy. The Government describes the aim of the law as correcting market distortions that will in turn preserve space for innovation and lower prices for both consumers and business users of digital services.
The draft law takes heavy inspiration from the DMCC Act in the UK
If passed, the Administrative Council of Economic Defense (Cade) would be responsible for designating platforms as having “systemic relevance” to digital markets and assigning bespoke obligations to each, reflecting provisions contained in the UK’s Digital Markets, Competition and Consumers (DMCC) Act. Similar to the creation of Digital Markets Unit (DMU) within the Competition and Markets Authority’s (CMA) Digital Markets Unit, the bill would establish the Superintendence of Digital Markets (SMD) within Cade, which would be responsible for implementing and enforcing the new law. The regulator would be empowered to weigh both qualitative and quantitative measures – including a minimum domestic turnover of BRL5bn (£694m) and global turnover of BRL50bn (£6.9bn) – in designating platforms. Cade would also consider a platform’s user base, strategic position for the development of third-party businesses, presence in multi-sided markets, vertical integrations, access to large volumes of data and market power associated with network effects in making its designation decisions. In total, the Government expects that only between five and 10 platforms would be designated. All proposed designations would be subject to public consultation and approval by Cade’s Administrative Court.
Brazil also has its eye on the EU Data Act and improving interoperability and portability
While obligations would be assigned on a case-by-case basis to designated platforms, the bill suggests a menu of possible requirements aimed at preventing anti-competitive behavior and improving transparency. Platforms, at the discretion of the SMD, could be prohibited from self-preferencing, enforcing exclusionary terms that prevent contracting with third-party firms and limiting direct contact between business users of a platform service and consumers. The SMD may also require that platforms publish the criteria used for rankings and display decisions and disclose the terms and technical conditions for the collection and processing of data from business users. In addition to bespoke obligations, the bill would also introduce a number of provisions regarding data portability and service interoperability similar to the EU’s Data Act. Platforms would be required to offer users free data transfer services and guarantee interoperability for third-party services. To address so-called killer acquisitions, designated platforms would also be required to notify Cade of all planned mergers and acquisitions, regardless of the notification thresholds set by existing competition law. If adopted, the provisions of the bill would come into effect within 60 days.
The Government is attempting to balance attracting tech investment against the aims of its new and growing regulatory rulebook
The digital competition bill comes at a critical juncture both in Brazil’s attempt to chart a unique path in regulating platforms and enhancing its technological sovereignty and in the country’s relationship with the US and big tech firms. The draft measure was introduced alongside tax incentives to attract data centre investment as well as the finalised text of the Digital ECA law aimed at protecting minors online. While each of these measures have taken significant inspiration from jurisdictions elsewhere in the world, the sheer size of the Brazilian market as well as its position as the first country in Latin America to introduce an ex-ante framework for digital competition may suggest the possibility of a “Brasília effect” whereby the country’s rulebook could influence other policymakers in the region. Perhaps given this potential influence, much attention was also paid to the timing of the introduction of the digital competition bill amid escalating tension between the Brazilian Government and the US tech sector. Though the Government was insistent in denying that the draft law was targeted at US tech firms, it nonetheless follows the launch of a US investigation into Brazil’s digital services tax in July 2025 as well as the imposition of 50% tariffs on Brazilian imports by the Trump Administration. This tension could complicate the country’s efforts to attract foreign investment in data centre infrastructure, even as its renewable energy resources and well-developed communications infrastructure, especially supporting subsea connectivity, have helped attract foreign investment in the past.
