The government mentions practices such as exclusivity agreements, "killer acquisitions," and self-preferencing.
Brazil's Economic Reforms Secretary predicts action on the matter to be taken by 2024 end
Photo Credit: Unsplash/ Ramon Buçard
Brazil's government on Thursday recommended a reform to its competition law that would allow antitrust authority CADE to designate certain digital platforms as systemically relevant, subjecting them to new obligations if necessary.
Brazil's Finance Ministry says that local legislation needs to be equipped with more tools to address a new reality where big tech firms, due to their size and market power, inhibit competition.
The government mentions practices such as exclusivity agreements, "killer acquisitions," and self-preferencing, where a company's own products, or services, appear first in internet searches.
New requirements would include pre-merger notifications, transparency rules for end-users and businesses regarding commercially relevant information on service and product usage and offerings, and a mandate to disclose changes in terms of service or conditions.
The government said that the proposed legislative change is a middle ground between the US and the European Union (EU) models for regulating large tech platforms, drawing inspiration from practices adopted in Japan, the United Kingdom and Germany.
For the changes to take effect, the government must decide whether to submit the recommendations as a new bill to Congress or introduce a substitute text that could be incorporated into an existing legislative proposal already under consideration.
"What we are proposing here is very reasonable and balanced," Economic Reforms Secretary Marcos Pinto told a press conference, adding he predicts action on the matter to be taken by the end of this year.
"Our goal is not to hinder innovation, impose unnecessary costs or create bureaucracy where it's not needed. What we want is to uphold a fundamental value in the economy, which is competition."
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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