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Project Creates Rules for Big Techs with Systemic Relevance and Foresees Daily Fines of up to R$ 1 Million.
According to Metrópoles, the government has sent a bill to Congress that requires big techs to maintain a physical office in Brazil and keep their contact details updated for notification. Those who fail to comply may face a daily fine of R$ 20,000, an amount that Cade can multiply by up to 50 times, reaching R$ 1 million per day in specific cases.
Furthermore, according to Metrópoles, the text focuses on platforms with systemic relevance in digital markets, a concept that encompasses companies with great market power, presence in multiple segments, and global revenue above R$ 50 billion or at least R$ 5 billion in the country.
The proposal creates oversight mechanisms and imposes pro-competition obligations, set to take effect 60 days after publication if approved.
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Who is Targeted and Why
The project targets large-scale digital platforms that influence competition and access for users and developers.
The logic is to bring supervision closer to where the service is offered, facilitating the imposition of sanctions and compliance with orders.
Cade will evaluate which agents will be designated as having systemic relevance, considering market power, vertical integration, multiple services, and revenue.
The final decision will rest with the Cade Tribunal, which gives binding character to the imposed obligations.
What Are the Main Obligations
In addition to a physical office and a valid email address, big techs may have to comply with special obligations defined on a case-by-case basis.
These include interoperability mechanisms, free portability and data transfer tools, the possibility of installing third-party applications, and transparency regarding prices, ranking, and terms of use.
For the government, these measures aim to curb anti-competitive practices, such as self-preference and market access restrictions. Local presence also reduces regulatory asymmetry, creating a direct channel for dialogue and oversight.
The declared objective is to protect competition and consumers without stifling innovation.
What Violations Might Cost
The text establishes a daily fine of R$ 20,000 for non-compliance. Depending on the economic size of the company, Cade can multiply this amount by up to 50 times, reaching R$ 1 million per day.
The gradation considers financial capacity and severity of conduct, seeking a real deterrent effect.
In practice, accumulated sanctions pressure for rapid compliance, especially in cases involving interoperability, API access, data portability, and ending undue preferences in dominant platforms. Enforcement will be handled by a new structure within Cade.
Who Monitors and How the Process Will Work
The proposal creates a Digital Markets Superintendency within Cade, responsible for monitoring, instructing processes, and proposing measures.
Designations of systemic relevance and specific obligations will be submitted to the Cade Tribunal, which decides ultimately.
This design separates investigation and judgment, reinforcing legal security. Metrópoles reports that official notifications and technical requirements must be fulfilled in Brazil, which facilitates the execution of decisions and reduces response time on sensitive issues for competitors and users.
What Can Be Prohibited or Required
The project lists prohibited conducts, such as limiting competitor access, favoring in-house products, and imposing artificial barriers.
It also authorizes positive obligations, such as opening interfaces, enabling portability, and disclosing ranking criteria.
For developers and businesses dependent on platforms, predictability of rules can reduce entry costs, while consumers benefit from transparency and choices. Big techs argue that regulatory excesses can stifle innovation, but the government believes that clear rules provide long-term stability.
Who Signs and When It Takes Effect
The text is signed by ministers Ricardo Lewandowski, Fernando Haddad, Esther Dweck, and Jorge Messias.
If approved, it will come into effect 60 days after publication, a period seen as a window for adaptation for updating registration, organizing the physical office, and compliance adjustments.
The creation of the Superintendency and the decision-making process at Cade will be decisive for the implementation pace. Companies with complex operations may need transition plans to ensure compliance with interoperability and portability.
The proposal signals a regulatory tightening in digital markets and requires local presence of big techs to ensure the effectiveness of Cade’s decisions. The potential for high fines and technical obligations may recalibrate the balance between innovation and competition in Brazil.
Do you agree that big techs need to have a physical office in the country to respond to Cade, or are you concerned this will increase costs and reduce innovation?
Share your experience as a user, developer, or entrepreneur in the comments; we want to hear from those living in this market daily.
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