Brazil Targets Big Tech in Landmark Antitrust Battle Amid U.S. Tensions
Brazil’s competition authority, CADE, is preparing to confront U.S. tech giants Apple and Google over alleged anti-competitive practices in their app ecosystems.
This move, reported by Estadão, marks a pivotal moment in Brazil’s regulatory efforts against Big Tech during a period of heightened geopolitical tensions with the U.S. under Donald Trump’s administration.
CADE has six ongoing investigations into Big Tech practices, with the first case set to address Apple’s restrictions on alternative payment systems in its App Store.
Developers have long criticized Apple for imposing a 30% fee on in-app transactions, though Apple claims this has been reduced to 15% for some programs.
The company also defends its payment system as secure and user-friendly. However, CADE recently ordered Apple to lift these restrictions within 20 days or face daily fines of R$250,000 (~$43,000).
A federal court temporarily suspended this order, calling it “disproportionate,” prompting Apple to appeal for a permanent resolution. A parallel investigation into Google’s Play Store policies is also underway.
Brazil’s Regulatory Push Against Big Tech Dominance
These cases reflect broader global concerns about the market dominance of digital platforms. Brazilian developers, including MercadoLibre and Epic Games, have lodged complaints about restrictive practices that stifle competition and limit consumer choice.
Such grievances align with international scrutiny of Big Tech, as regulators worldwide seek to curb monopolistic behaviors. The Lula administration has intensified its focus on regulating digital platforms.
This comes amid fears that reduced content moderation by companies like Meta could amplify hate speech and misinformation. Concurrently, the government faces challenges from the Trump administration’s recent imposition of a 25% tariff on Brazilian steel and aluminum exports.
This has complicated bilateral relations. Brazil is also exploring legislative reforms to strengthen CADE’s authority over digital markets.
Proposed measures include designating platforms as “systemically relevant,” enforcing transparency requirements, and addressing practices like exclusivity agreements and self-preferencing.
These efforts mirror regulatory frameworks in the European Union and Australia. This regulatory push positions Brazil as a key player in the global debate over Big Tech governance.
The outcome of CADE’s investigations could reshape digital market dynamics in Brazil while influencing international approaches to regulating dominant technology firms.
