President Trump's Meeting with Lula is an Opportunity to Fight Brazil’s Discriminatory Digital Regulation Bill – Americans for Tax Reform
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As Brazilian President Luiz Inácio Lula da Silva arrives in Washington for talks with President Trump, the our president should make it clear that discriminatory digital regulations targeting American technology companies cannot be part of a strong U.S.-Brazil economic partnership.
Tech regulation is reportedly on the agenda for the meeting. This presents President Trump with a timely opportunity to push back against Brazil’s Bill 4675/2025, the so-called Fair Competition Act for Digital Markets, which would impose burdensome, size-based obligations on a narrow set of American tech companies. The bill draws heavily from the European Union’s Digital Markets Act (DMA) and the UK’s Digital Markets, Competition and Consumers Act (DMCC), following a pattern of regulatory protectionism that harms consumers, stifles innovation, and strains bilateral trade relations.
Bill 4675/2025 Targets American Innovation, Not Anticompetitive Conduct
This legislation would designate “systemically relevant” digital firms, based primarily on size thresholds that effectively single out successful U.S. companies, for sweeping ex ante obligations. Rather than addressing specific harmful conduct through established antitrust tools, it would restrict how services can be designed, integrated, and improved. This approach discourages new features, business models, and investment while benefiting neither Brazilian consumers nor small businesses that rely on these platforms to communicate, shop, advertise, and access entertainment. This is to say nothing of the effect on interpersonal communication and freedom of speech, which has been under assault in Lula’s Brazil.
Like Europe’s digital sovereignty agenda, Brazil’s bill risks insulating domestic players while imposing massive compliance costs on American firms. It sets a damaging global precedent that could spread across Latin America, undermining the very digital tools that drive economic growth and secure political freedoms in emerging markets.
Protect American Jobs, Investment, and the U.S. – Brazil Relationship
The economic ties between the United States and Brazil support significant jobs and investment on both sides. Discriminatory regulation that targets our nation’s tech companies puts this relationship at risk. It functions as a non-tariff barrier, harming innovation, reducing opportunities for Brazilian users and entrepreneurs, and weakening bilateral trust at a time when both nations should be deepening cooperation on trade, security, and critical minerals.
President Trump Should Personally Make the Case
President Trump has rightly pushed back against Europe’s regulatory attacks on American tech. The same principle applies here: the U.S. should not tolerate efforts to export failed European-style regulation to our hemisphere.
President Trump should directly raise Bill 4675/2025 with President Lula and urge Brazil to drop this legislation. The Brazilian House is finalizing text with a potential vote as soon as June. Halting this bill now would protect consumers, preserve innovation, and strengthen the U.S. – Brazil partnership.
The Trump administration has already successfully defeated digital trade barriers in the Western Hemisphere. Canada imposed a digital services tax in June 2024 but repealed it a year later as part of trade negotiations with the U.S. President Trump’s negotiators singled out the DST for repeal in the bilateral effort to reduce restrictions. Presidential pressure, backed by the manifold retaliatory measures at the chief executive’s disposal, could make the difference in defeating Brazil’s heavy-handed regulation.
Americans for Tax Reform will continue to monitor these developments and advocate for free-market digital policies that reward success rather than punish it.
Read the full digital regulation bill here.
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