Is Brazil’s Digital Markets Proposal Based on Genuine Consensus or Unproven Narrative?
Apopular narrative has emerged in Brazil in recent years about the “genuine consensus” supporting the need for more stringent regulation of digital markets. This narrative has been fueled by a growing number of cases of alleged anticompetitive conduct by so-called “global mega-corporations,” including the Mercado Livre/Apple case and the more recent Meta/Apple case. The perceived urgency to act is, however, largely built on speculative assumptions, rather than solid evidence.
While proponents argue that ex-ante regulations are needed to curb monopolistic behaviors and ensure fair competition in digital markets, a closer examination reveals this narrative to rest on largely unproven empirical claims of market failure and consumer harm. Before adopting untested regulatory frameworks, Brazil must critically assess whether the proposed measures would mark a genuine improvement, or merely a solution in search of a problem.