American lawmakers are sounding the alarm that Brazil may be taking a page out of Europe’s playbook, enacting laws designed to hurt American companies.
Brazil is in the midst of a debate over legislation that would impose massive regulations on digital markets, which are dominated by American tech companies. A Republican lawmaker says the Brazilians should consider what happened in Europe, which is now under pressure from President Donald Trump to dial back the restrictions.
Rep. Scott Fitzgerald (R-WI) says Trump should nip the push in the bud, making it part of the ongoing trade deal with the South American country.
“I’m shocked to learn that Brazil, in the middle of trade discussions with the U.S., is fast-tracking a DMA-style bill that targets U.S. companies,” Fitzgerald said.
Trump has championed American businesses and pledged to fight overseas regulations that hurt domestic companies during his trade negotiations. In the trade framework agreement with the European Union, Trump made the Europeans promise they would “address unjustified digital trade barriers.”
The European Union passed the Digital Markets Act in 2023 to regulate the influence held by major tech companies, labeling the big six tech companies all “gatekeepers.” To be labeled a gatekeeper, the law explains, the company must act as a channel for businesses to reach their customers, have a broad influence across Europe’s digital economy, and be a mainstay in the digital platform space.
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All six designated gatekeepers — Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft — have since raised concerns about how the rules work in practice.
“The Digital Markets Act isn’t helping European markets,” stated Apple. “Instead of competing by innovating, already successful companies are twisting the law to suit their own agendas.”
Gatekeeper companies face severe consequences for noncompliance. Regulators can impose fines of up to 10% of a company’s annual revenue for a single violation, rising to 20% for repeat offenses. Although the law applies in Europe, the fines capture revenue generated worldwide.
Trump criticized such regulations in August, writing on Truth Social, “As the President of the United States, I will stand up to countries that attack our incredible American Tech Companies. Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology.”
Experts warn that Brazil, one of the largest economies in the world, is setting itself on the same course.
“Brazil would be wise to put this ill-advised legislation on ice,” said Ashley Baker, executive director of the Committee for Justice. “The Digital Markets Act is bad policy. It was a blunder when Europe pursued it, and Brazil attempting to import that approach to the western hemisphere is bad for their prospects of reaching a trade deal with the United States.”
Baker said that any attack on U.S. innovators marks “a red line” for Trump.
Michael Toth, research director at the Civitas Institute, warns that Brazil’s proposal will cause the same competition problems that regulation caused in Europe.
“Brazil’s proposed digital markets bill unfairly targets U.S. technology companies under the guise of promoting competition,” Toth said. “By replicating Europe’s flawed model, it creates a discriminatory system that hurts consumers and innovation.”
