Digital Platforms Competition Regulation in Brazil
Following the European Union’s recent adoption of the Digital Markets Act (DMA), we found ourselves closely watching how other jurisdictions might follow the EU blindly, believing they are doing the right thing. In Brazil, the conversation is heating up. Both the legislature and CADE (the Administrative Council for Economic Defense) are weighing whether to regulate digital platforms. Being at the heart of the digital ecosystem as a small app developer, we know that Brazil’s decision isn’t just a local matter—it could set the tone for digital competition worldwide.
We recently participated in a webinar titled “Digital Platforms Competition Regulation in Brazil,” co-hosted with the Legal Grounds Institute. The discussion brought together experts in product development, platform competition, and innovation, all focused on the potential regulatory paths Brazil might take and what DMA-style regulation could mean for our global digital markets.
A Multifaceted Debate
During the webinar, all panelists explored the diverse roles that platforms, developers, and regulators play in fostering a vibrant digital ecosystem. One point that resonated with us was the challenge of pinpointing what exactly needs, and also importantly, doesn’t need regulation. As Rafael Parisi, a senior fellow at the GW Competition & Innovation Lab, explained, regulators must first identify the specific problems before potentially drawing inspiration from frameworks like the DMA. He wisely reminded us that each country’s economic context matters—a nuance that many discussions seem to overlook.
Our Founder’s Perspective as a Developer
I’ve experienced firsthand how a unified, less fragmented market benefits small developers. I often reflect on the protections I enjoy—from intellectual property rights to streamlined app distribution—and how these advantages allow me to reach millions worldwide with just a modest budget. As I put it during the discussion:
“There are many protections in place for us, such as IP protection, app distribution, and adaptability. These benefits are made easier through a market that isn’t fragmented. I can reach everyone on the planet with an iPhone or an iPad, which makes it easier for me with a very small budget. I want to focus on building the app or idea—the experience and offerings—without getting bogged down in the legal complexities that platforms like Apple handle for me.”
This streamlined approach is essential. I see the proliferation of multiple app stores as a potential pitfall: instead of enlarging the market, it might just increase overhead and fragment the consumer base, making it harder for small developers like me to thrive.
Weighing the DMA’s Impact
The DMA aims to reshape the digital landscape in the EU by imposing new obligations on so-called “gatekeeper” platforms. While its goal is to foster competition, there are serious concerns about unintended consequences for smaller players. Morgan Reed, president of the App Association, voiced a concern vaic.at shares and that hit home for us: if major platforms shift their focus to regulatory compliance rather than innovation, the whole ecosystem could suffer. As he pointed out, it’s all about balance—ensuring that competition drives innovation, not legal battles.
We are particularly wary of policies that, while well-intentioned, might inadvertently sideline the voices of the small players. For instance, Commissioner Margrethe Vestager’s statement that the DMA was designed to amplify the voices of SMBs doesn’t fully capture our everyday challenges. We shared our own take during the panel:
“It is very hard for a small business to get our voice in, which is something I want to thank the App Association for addressing. In Brazil, if we only listen to a small fraction of businesses—say, just 1 percent—it can lead to policies that favor large players. It makes me feel uneasy because policies meant to protect small businesses often end up being shaped by very big corporations.”
Looking Ahead
The discussions underscored a critical point: user safety, privacy, and data security must remain priorities and we need to ensure that policies don’t stifle innovation. The predictability offered by a well-structured regulatory framework provides comfort to both developers and consumers. However, the one-size-fits-all approach of the DMA is not the right fit, not for the EU and particularly not for a dynamic, developing digital ecosystem like Brazil’s.
As Morgan Reed summarised near the end of our webinar, the real danger with laws like the DMA is that they could shift the focus from innovation to mere legal compliance. When companies are forced to hire lawyers rather than developers, the whole system risks losing its creative edge. This is a scenario I’m deeply concerned about as a small business owner striving to build the next great app.
In Conclusion
Reflecting on the webinar, we recognise the issues of copying bad regulatory frameworks and paste them into other countries. Brazil has the opportunity to keep their policy framework balanced and protected for consumers, fostering innovation, and ensuring that small developers can continue to thrive. We remain hopeful that by listening to voices from all corners of the digital ecosystem, including those of small developers like me, Brazil can set a precedent for smart, balanced digital market that benefits everyone.
Check out the video below.
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