The Government of Brazil has initiated a public consultation on the economic and competition aspects of digital platforms, including search engines, instant messaging, social media, and marketplaces. At this point, there is no proposed draft legislation or regulation, but the Government is requesting responses to a series of 16 open-ended questions. The consultation may lead to major changes in Brazilian antitrust policy and to a new legal framework impacting digital economy companies.
The questions include topics such as: whether different types of digital platforms should be regulated differently; whether existing antitrust remedies are sufficient to address competition issues raised by the ownership structure and operation of digital platforms; and whether and how ex ante and ex post measures should be adopted when it comes to digital platforms.
The consultation was launched by the Ministry of Finance and is open until March 18, 2024.
Why is this important for business?
The consultation points to the following potential future outcomes of this process that might impact business:
- Changes to Brazil’s Antitrust Act of 2011 (Law No. 12529/2011);
- A new digital platforms legal framework to be introduced by the executive branch, in addition to bills already in debate in Brazil’s National Congress; and
- A new digital platforms regulator and/or expanded regulatory powers for the existing antitrust authority as well as for other federal government agencies.
The Ministry of Finance has been a leading, active, and effective agency in economic policymaking and the public consultation was initiated by its division focused on economic reforms. This increases the likelihood of these potential outcomes.
The consultation process is an opportunity for interested companies to help shape policymaking at an early stage. Covington’s Public Policy team is ready to support clients interested in submitting comments or suggestions.
If you have any questions concerning the material discussed in this client alert, please contact the members of our Latin America Public Policy group.
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