U.S. Embassy Seeks Delay to Digital Markets Regulation at Big Tech's Request

The U.S. Embassy, at the request of major technology companies, approached federal lawmaker Aliel Machado (PV-PR), rapporteur of Brazil's digital markets regulation bill, urging him to postpone a vote on the proposal in the Chamber of Deputies in the coming weeks.

The meeting, held on Tuesday (7), was attended by Economic Counselor Matthew Lowe and Digital Economy Associate Flora Lindsay-Herrera. According to Machado, the U.S. representatives did not present any specific demands, criticism or proposals; they simply asked for more time.

"They came to ask for more time, saying the companies had reached out to them, asked for their help, and that this was not the right time to vote," the lawmaker said.

The embassy told Folha it does not comment on "private diplomatic conversations." Amazon and Google declined to comment, while OpenAI, Microsoft and Apple did not respond.

The bill would create, within Brazil's antitrust authority (Cade), a Special Superintendency for Systemic Relevance, Free Competition and Consumer Protection in Digital Markets. Among other measures, it would prohibit platforms from favoring their own products and require greater algorithmic transparency. The proposal is a priority for President Luiz Inácio Lula da Silva's government.

This was the second meeting between Machado's office and the U.S. Embassy since he became rapporteur in October last year. In November, the same representatives had already requested that the vote be postponed.

"I honored my commitment. We listened to everyone, held meetings, traveled extensively, spoke with companies, the government and party leaders. We produced a preliminary report, which is already public. We're still open to hearing new contributions from anyone willing to engage," Machado said.

The bill has been under a fast-track procedure since March, and Machado presented a revised version on Wednesday (8). Since late June, major technology companies have stepped up lobbying efforts against the proposal, including a letter from Alai calling for the vote to be delayed.

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