Introduction of DMA-Style Brazilian Online Platform Legislation Will Stifle Growth of Digital Economy

WASHINGTON, D.C. – ACT | The App Association is discouraged by today’s announcement from Brazilian President Luiz Inácio Lula da Silva of proposed legislation to regulate the digital economy, similar to the approach taken in the European Union’s Digital Markets Act (DMA). The DMA so far has produced no positive movement towards its stated goals of boosting competition and supporting startups and scaleups. Rather than pursue this, Brazil’s policymakers should learn the lesson from DMA and build a pro-innovation and pro-growth policy environment.

“Our members in Brazil, and around the globe, rely on the benefits of online marketplaces to build their businesses and fuel innovation,” said Morgan Reed, president of ACT | The App Association. “We urge the National Congress to reject provisions that will distort competition and undermine the important digital platform functions that small business developers use to build and share their innovative products with a global market. The flexibility and accessibility offered by online digital marketplaces are crucial for the growth and sustainability of small companies throughout Brazil’s rapidly-evolving digital economy.”

In a letter to Fernando Haddad, Minister of Finance for Brazil, the App Association encouraged policymakers to support a policy environment that ensures fair competition while fostering the continued innovation of the vibrant online digital economy supporting the growth of businesses and creating new jobs.

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