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Economic Regulation Project Targets Big Techs With Revenue Above R$ 5 Billion in Brazil. Final Text Foresees Heavy Penalties, New Transparency Obligations, and Creation of Specific Agency to Oversee the Digital Sector
The federal government is preparing an economic regulation project that could change the way technology giants operate in Brazil. The proposal, which the newspaper O Globo had access to, targets companies with annual revenue exceeding R$ 5 billion in the country and R$ 50 billion globally, imposing restrictions against practices deemed abusive and demanding greater transparency in ranking criteria and product display.
The measure reflects an international trend to limit the power of big techs, accused of stifling competitors and controlling strategic sectors of the digital economy. The text was drafted by the Ministry of Finance and finalized at the Palácio do Planalto, set to be sent to Congress next week.
Who Will Be Affected by the Economic Regulation Project
The project directly targets companies such as Google, Meta, Amazon, Apple, Microsoft, ByteDance, and Booking, which hold a significant portion of the digital market in Brazil. According to the Ministry of Finance, fewer than ten companies are expected to meet the defined criteria, but together they wield strong influence over consumption, advertising, mobility, and digital services.
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A new Brazilian shopping center worth R$ 400 million will be built in an area equivalent to more than 4 football fields, featuring 90 stores, 5 cinemas, a supermarket, a college, and parking for 1,700 cars, potentially generating 3,000 jobs.
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Larger than entire cities in Brazil: BYD is building a 4.6 km² complex in Bahia with a capacity for 600,000 vehicles per year, but the discovery of 163 workers in conditions analogous to slavery has shaken the entire project.
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With an investment of R$ 612 million, a capacity to process 1.2 million liters of milk per day, Piracanjuba inaugurates a mega cheese factory that increases national production, reduces dependence on imports, and repositions Brazil on the global dairy map.
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Brazilian city gains industrial hub for 85 companies that is equivalent to 55 football fields.
Besides restricting anti-competitive practices, such as exclusivity agreements and preference for own products on marketplaces, the proposal also aims to prevent the purchase of startups solely to hinder their development as future competitors.
Fines and Requirement for Office in the Country
Among the stricter measures, the economic regulation project stipulates that companies without an office in Brazil will be subject to a daily fine of R$ 20,000, a value that may be multiplied by up to 50 times depending on the financial situation of the offender.
It will also be mandatory to keep a physical and electronic address updated with the Administrative Council for Economic Defense (Cade) for notifications, along with the personal data of legal representatives. Non-compliance with these obligations has already set precedents, such as the case of social network X, suspended in Brazil in 2024 for failing to indicate a representative in the country.
The New Role of Cade
The text significantly expands the power of Cade, which will gain a Superintendency of Digital Markets. The agency will be able to require independent audits to verify compliance with imposed obligations and will have the autonomy to act in cases of suspected collusion among platforms.
The superintendent will be appointed by the President of the Republic after approval in the Senate, with a renewable two-year term. Among the oversight criteria will be number of users, market power, and integrations in adjacent sectors.
Why the Government Invests in This Regulation
For the government, economic regulation of big techs is necessary to correct distortions that affect competition and harm domestic companies. The administration argues that, despite offering free services to the public, these platforms charge high fees from smaller companies, controlling access to the digital market in an unequal manner.
According to Marcos Pinto, Secretary of Economic Reforms at the Ministry of Finance, the Brazilian model will be inspired by the European Union, but more flexible, similar to the regulations in Germany and the United Kingdom. The expectation is that the measure brings greater economic balance, while avoiding excessive bureaucracy.
Expected Impacts in Brazil and Globally
If approved, the economic regulation project could reposition Brazil in the global debate on digital regulation. Experts state that, in addition to reducing abuses, the measure could stimulate local innovation, ensuring more space for startups to compete on equal footing.
At the same time, critics warn that overly restrictive regulation could deter foreign investment. The challenge will be to find a balance between control and attracting capital in a market dominated by multinational giants.
And you, do you think the economic regulation project will really limit the power of big techs or could it end up creating new obstacles for the digital market in Brazil? Leave your opinion in the comments.
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