Transnational technology corporations and the United States government secured a significant victory in Brazil as the Chamber of Deputies narrowed Bill 4.675/2025, delaying a vote on critical competition reforms. This legislative maneuver effectively protects the accumulated wealth and market dominance of the largest digital platforms. The proposed legislation, known as the Fair Competition in Digital Markets bill, initially aimed to amend Law 12.529/2011, granting Brazil’s competition regulator, CADE, pre-emptive powers over dominant platforms. Such powers would have allowed CADE to impose obligations on companies designated as systemically relevant in digital markets, acting before abuses occurred rather than after.
The original bill sought to limit platforms from favoring their own services, mandate interoperability with rivals, demand transparency on rankings and algorithms, and require notification of acquisitions. These measures were designed to curb the market dominance and surplus extraction capabilities of the largest technology firms. The revenue thresholds for designation remained at approximately R$50 billion in global revenue or R$5 billion in Brazil.
However, the criteria for applying the systemic relevance label were significantly altered. The initial text weighed data volume, number of business and end users, and gatekeeper characteristics separately. The revised text now requires these criteria to be assessed jointly, making it substantially harder for CADE to designate platforms for oversight. Furthermore, the duration of such a designation was reduced from ten years to a maximum of six, with a possibility of reopening after two years.
Deputy Aliel Machado, the rapporteur, circulated the substitute text between late June and mid-July, framing the changes as adding “legal certainty.” CADE’s acting president, Diogo Thomson de Andrade, stated the regulator was open to clarifying wording. This official narrative of clarity, however, serves to rationalize the concessions made to concentrated capital and imperial interests.
Imperial Leverage and Capital's Gain
The narrowing of the bill followed a period of aggressive external intervention. The United States initiated a Section 301 trade investigation into Brazil, explicitly naming Brazilian digital regulation as a concern. This investigation concluded on July 15 this year with the imposition of a 25% tariff on many Brazilian goods, effective July 22 this year. Twenty Republican members of Congress sent a letter to the US Trade Representative in late July, specifically citing Bill 4.675/2025. This economic leverage, wielded by the US state apparatus, functioned as an imperial garrison, protecting the market dominance and profit margins of its transnational tech corporations. Alongside this state-level pressure, extensive platform lobbying and internal opposition within the Brazilian Congress also contributed to the bill’s weakening.
The State's Selective Enforcement
While the competition provisions were deferred and diluted, decrees published on May 21 this year concerning platform content moderation remain in force. Brazilian courts have declined to suspend these decrees. This distinction highlights the state’s selective approach: it maintains control over content, which can be used to manage social contradictions and suppress dissent, while retreating from structural reforms that would genuinely challenge the capital accumulation strategies of the largest tech firms. The original bill aimed for a model similar to Europe’s Digital Markets Act, allowing regulators to set rules upfront rather than engaging in lengthy, post-facto punishment of abuses. The current outcome ensures that the existing distribution of power in digital markets remains largely undisturbed, preserving the mechanisms of surplus extraction for the benefit of a few dominant players.