Big Techs: Project on regulation that angered the USA advances in the Chamber

The Chamber of Deputies moved forward with a bill that economically regulates large technology companies in Brazil. At a meeting of party leaders held in Brasília, a minimum voting agenda was defined, and the topic of Big Techs emerged as one of the central points of the legislative calendar.

According to the director of Journalism at CNN in Brasília, Daniel Rittner, deputy Aliel Machado (PV-PR) will file the report on the bill for the economic regulation of Big Techs on Wednesday (8).

The text, prepared essentially by the Ministry of Finance, is strongly inspired by British and European regulation on digital markets and has no relationship with general content regulation or the so-called fake news bill.

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What the project envisages
The project significantly expands the powers of Cade (Administrative Council for Economic Defense) and creates a specific superintendence to analyze business in the digital sector.

One of the most relevant changes is the possibility for Cade to act preventively, before an acquisition or market movement causes damage to competition. Currently, the body acts only after the fact.

The proposal also creates a category of companies considered to be at systemic risk: those that earn more than R$5 billion in Brazil or more than R$50 billion worldwide. Gustavo Augusto, former director of Cade, and Diogo Thomson, currently responsible for the body, are described as defenders of regulation.

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Tension with the United States
The project is viewed with concern by the American government. The text was expressly cited in the latest USTR report - the same department of the United States government that recommended the application of 25% tariffs on Brazilian products -, in a survey of barriers that countries impose on American companies.

In the chapter aimed at Brazil, the bill was mentioned as an example of these barriers. According to Rittner, there is a request for the vote to take place next week, but there was still no confirmation that Hugo Motta, president of the Chamber, intends to put the text on the agenda.

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Source: CNN