US Republican Congressmen Urge Trade Action on Brazil's Digital Market Regulation
Twenty Republican US congressmen have urged the Trump administration to include Brazil’s digital market regulation bill in trade talks, citing discrimination against American tech firms.
- • 20 Republican congressmen led by Adrian Smith and Jim Jordan wrote to USTR expressing concerns about Brazil's digital regulation proposal.
- • The Brazilian Fair Competition Law for Digital Markets mirrors the EU’s Digital Markets Act and could impose costly requirements on US firms.
- • Congressmen argue Brazil’s proposal discriminates against American technology companies and advances without US consultation.
- • They called for the bill to be addressed in trade talks and support continued Section 301 investigations and reciprocal trade agreements.
Key details
A group of 20 Republican US congressmen, led by Adrian Smith and Jim Jordan, has urged the Trump administration to address Brazil’s proposed digital market regulation in upcoming trade negotiations. In a letter to USTR Jamieson Greer, they argued that Brazil’s Fair Competition Law for Digital Markets (PL 4.675/2025) discriminates against American technology companies. The proposed Brazilian bill, which mirrors the European Union’s Digital Markets Act, could compel American firms to modify their business models and share intellectual property, potentially resulting in billions in costs, reduced investment, and innovation setbacks.
The congressmen highlighted that Brazil has advanced these policies without consulting the US, despite ongoing Section 301 investigations by the USTR that identified Brazilian measures harmful to US digital commerce, including penalties against digital platforms and discriminatory advantages for state-run payment services. They expressed concerns that Brazil’s regulatory approach is part of a broader attempt to deter similar regulation efforts globally. The letter urged that the Brazilian bill be incorporated into bilateral trade discussions and endorsed the continuation of Section 301 measures and reciprocal trade agreements to protect US tech companies.
These developments reflect mounting US political pressure on Brazil amid concerns that digital regulation proposals could disadvantage American technology businesses and disrupt trade relations.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
