Lula administration outlines dual strategy for big tech regulation - Valor International

Amid the ongoing trade dispute with the United States, President Luiz Inácio Lula da Silva’s administration has decided to split its push to regulate big tech companies and social media in Brazil into two separate bills. One proposal would place platforms under the oversight of the National Data Protection Authority (ANPD), which would be tasked with imposing sanctions when it determines that users are being harmed. The second bill would grant new powers to the Administrative Council for Economic Defense (CADE), allowing the agency to act against the formation of oligopolies in the sector.

Experts have pointed out the need to regulate the activities of so-called “big techs,” an issue under discussion in several countries. However, according to government and Federal Supreme Court (STF) officials, the topic has also served as a backdrop to the sanctions announced by U.S. President Donald Trump against Brazil.

Both proposals are undergoing final adjustments after review by President Lula and are expected to be sent to the National Congress next week. The formal submission, however, will only take place after prior discussions with the presidents and leaders of the Chamber of Deputies and the Senate. The idea is to align the content with lawmakers before officially presenting the bills.

Valor has learned that the proposal specifically addressing the ANPD’s role will focus on services offered by social media networks. In this case, the bill deals with the platforms’ “duty of care” toward their users, especially children and adolescents. As a result, it would empower the ANPD to order the temporary blocking of content and impose sanctions.

In practice, the text would also strengthen the ANPD institutionally. Currently, the agency is seen within the public sphere as something of a “platypus,” due to its limited remit under the General Data Protection Law (LGPD) and its current status as a Justice Ministry-affiliated body.

The second bill will focus on competition issues in the big tech market. The government believes it is necessary to prevent technology companies from enforcing exclusivity agreements or engaging in cross-market activities as a way to control the market. One example is tech firms that create practical barriers preventing their users from accessing services tied to direct competitors—a scenario that could target, for instance, delivery and food app operators that dominate the sector.

To curb such practices, the government plans to propose in the bill that CADE be allowed to act preventively. This would mean that, if approved by Congress, the council would have new tools beyond its well-known role of judging and sanctioning those who commit anti-competitive practices.

The regulation of social media has gained heightened visibility in recent days after a video by YouTuber Felipe Bressanim, known as Felca, went viral for highlighting what he called the “adultization” of children on social networks. The video’s reach prompted the Chamber of Deputies to announce plans to fast-track bills aimed at protecting children on online platforms.

Despite the federal government’s efforts, platform regulation has been on Congress’s agenda for some time. One bill awaiting consideration by lawmakers, authored by Senator Alessandro Vieira (Brazilian Democratic Movement, MDB, Sergipe), focuses specifically on child protection on social media. Government sources emphasize that the intention is not to impose a path on Congress but to “engage in dialogue” toward a consensus text among the branches of government. According to senior Planalto officials, the administration’s proposal would be “complementary” to Mr. Vieira’s, which is already awaiting a vote in the Chamber.

This article was translated from Valor Econômico using an artificial intelligence tool under the supervision of the Valor International editorial team to ensure accuracy, clarity, and adherence to our editorial standards. Read our Editorial Principles.