Washington – The Brazilian Ministry of Finance has released a report on digital regulation, following the Ministry’s consultation on the economic and competitive aspects of digital platforms. The Computer & Communications Industry Association had submitted comments on this issue earlier this year.
Continuing CCIA’s engagement in recent Brazilian competition and regulatory developments, last year CCIA Vice President of Global Competition and Regulatory Policy Krisztian Katona delivered remarks during the Brazilian Chamber of Deputies’ Economic Development Commission hearing on Bill No. 2768/2022, the “Brazilian DMA proposal,” and CCIA also submitted comments to the Brazilian Congress in response to its public consultation on the same Bill in December 2023.
In its report released today, the Ministry of Finance recommends antitrust reform and proposes the adoption of specific measures to deal with alleged competition concerns in digital markets. Among others, the report discusses how certain exclusivity agreements, “killer acquisitions,” and self-preferencing may pose competition risks and require additional tools for regulators to address.
The proposed reforms would allow CADE, the country’s competition authority, to designate certain digital platforms as “systemically relevant,” based on qualitative and quantitative measures. Once designated, CADE would investigate designated companies and may impose new ex-ante obligations. The Government is likely to present a bill to Congress to introduce the proposed legislative amendments by the end of the year.
The following can be attributed to CCIA Vice President of Global Competition and Regulatory Policy Krisztian Katona:
“CCIA welcomes the Ministry of Finance’s in-depth examination of the competitive dynamics in Brazil’s digital markets and study of regulatory proposals in other jurisdictions. Were a new Brazilian digital regulatory framework introduced, we would agree that the designated authority should be CADE, the expert agency for competition issues.
“It is worth noting that the few existing international ex-ante digital frameworks are still regulatory experiments, and their initial results raise several questions as to their impact on innovation, investment, and economic growth. A key question regarding any regulation is whether it is principles-based, and implemented in a reasonable and proportionate way. For an economy with such a thriving innovation and startup ecosystem, including its dynamic fintech space, it will be particularly important for Brazil to ‘get it right’ and to preserve a robust and competitive economy.”
