Upcoming regulation on digital platforms in Brazil

Lawmakers often choose ex-post regulations to encourage innovation, which means regulating at a later stage only if market failures or any other risks to competition arise. According to some Brazilian legislators, the moment to improve regulation on digital platforms has arrived.

Since 2020, the National Congress has been discussing the Brazilian Law on Internet Freedom; Accountability and Transparency – known as the Fake News Bill. After riots and invasions in the capital Brasília in the beginning of this year, it became one of the Brazilian Congress’ top priorities.

Previously, the Bill encompassed different hot topics into one document: digital platforms’ transparency and accountability; remuneration of journalistic content; copyright on the internet; and more. The complexity involving these matters resulted in a total lack of consensus among stakeholders which has led the Congress to adopt a new strategy: splitting the original bill into three new documents. Interestingly, even after sectionalizing the debates, none of the bills were yet voted.

Although there is consensus that some kind of regulation is needed regarding the digital platforms’ activities, it is known that such regulation is not trivial. The EU experience is a good example that must be analyzed by Brazilian lawmakers, but it is not necessarily the best fit for the Brazilian market.

There is hope that the Congress will realize the importance of the matter to be regulated and promote a more in-depth discussion. However, the risk of the Congress not resisting the pressure of certain industry groups and resorting to the fast-track proceeding to approve a bill that was not even well known by all stakeholders is real.

The following weeks seem promising when it comes to news on the matter.