Note on the press conference of the Secretariat for Economic Reforms of the Ministry of Finance

On 10 October 2024, the Secretariat for Economic Reforms of the Brazilian Ministry of Finance (SRE/MF) presented the results of a public consultation, announced in January this year, regarding the economic and competition regulation of digital platforms. 

The initiative aimed to gather contributions and suggestions for possible changes to the Brazilian competition law, assess whether new regulation is necessary, identify which aspects should be subject to regulation, and determine how to coordinate government action to manage this issue, in collaboration with the Secretariat for Digital Policies (Secom-PR) and the Secretariat for Digital Rights (MJSP). 

CADE reinforced its institutional authority in addressing the competition challenges of digital platforms in its contribution, submitted to the public consultation in April 2024. The authority highlighted the need for ex-ante regulation, meaning preventive measures, to complement the current Brazilian Competition Law (Law no. 12529/2011). The antitrust agency believes that a regulatory and preventive approach is essential to address the structural issues of these markets. 

The guidelines outlined by the SRE/MF are in line with CADE’s contribution to the public consultation. Both institutions agree on the need to update the regulatory framework, which should include proactive and transformative interventions, going beyond, when necessary, the limitations imposed by traditional antitrust instruments in the complex digital landscape. CADE’s perspective highlights the importance of ex-ante competition regulation and aims to correct the structural dysfunctions of digital ecosystems, which impacts on generation and appropriation of value. These dysfunctions differ from the typical failures of traditionally regulated markets, requiring a more dynamic and adaptive regulatory approach to the digital environment’s peculiarities. 

Furthermore, CADE emphasises the need to create a specialised unit in digital markets, as indicated by the SRE/MF. Such organisation allows a more direct and efficient acting to address the competitive challenges of digital platforms, which is in line with the international best practices. Similarly, the agency reinforces the relevance of a flexible regulatory model, with individualised adjustments and a continuous monitoring. This aspect is recognised by the SRE/MF as essential to handle the dynamism and constant transformation of the digital sector. 

The consensus between CADE’s guidelines and the SRE/MF's proposals reaffirms the goal of ensuring a robust regulatory framework. It guarantees consumer protection and preserves a contestable market in the digital space, contributing to the balanced and competitive development of the digital economy in Brazil. 

CADE acknowledges the significant initiative of the SRE/MF and will continue to closely monitor discussions on the regulation of digital platforms, contributing to the evolution of public policies in this area, aiming to promote fair and balanced competition.  

Access the document in Portuguese here and Cade's contribution to the Ministry of Finance's Public consultation for regulation of digital platforms here.