Lawmakers Warn Brazil’s Tech Bill Threatens U.S. Companies

As Brazil moves to fast-track sweeping digital market regulations, Republican lawmakers and policy experts are warning the South American nation is setting itself on a collision course with the United States and with President Donald Trump.

The proposed legislation mirrors the European Union’s controversial Digital Markets Act (DMA), a law explicitly designed to rein in so-called “gatekeeper” tech companies all of which happen to be American. Now, with Brazil looking to import that playbook, U.S. lawmakers are demanding action before another global economy weaponizes regulation against American innovation.

“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,” said Rep. Scott Fitzgerald (R-WI). He urged Trump to make it a priority in current trade negotiations, saying the legislation would undercut the very foundation of U.S.-Brazil relations.

The European model, passed in 2023, labeled six companies Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft as “gatekeepers,” subjecting them to complex regulations and crushing penalties for noncompliance. Those fines can reach up to 20% of global revenue, not just profits, meaning U.S. firms are being punished for their success worldwide, not just in Europe.

Unsurprisingly, Brazil’s version follows the same pattern and critics say it’s nothing more than a thinly veiled effort to target American firms under the guise of “fair competition.”

• The EU’s DMA allows foreign competitors to weaponize regulation instead of competing through innovation.

• Gatekeeper companies have warned the rules are vague and unworkable, favoring local interests over consumer choice.

• In practice, the law limits U.S. tech growth and benefits entrenched European firms unable to compete globally.

Now Brazil appears ready to make the same mistake. Ashley Baker, executive director of the Committee for Justice, didn’t mince words:
“Brazil would be wise to put this ill-advised legislation on ice.” She added, “This is a red line for Trump. The Digital Markets Act was a blunder in Europe, and copying it is a threat to any trade deal with the United States.”

President Trump has been vocal in defending American companies from foreign overreach. In August, he wrote:
“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.”

This move by Brazil could severely jeopardize ongoing trade talks. As one of the largest economies in Latin America, Brazil is a critical player but that status doesn’t give it a pass to punish American success. If it insists on importing Europe's failed model, expect Trump to respond forcefully.

Michael Toth of the Civitas Institute summed it up well: “Brazil’s proposed digital markets bill unfairly targets U.S. technology companies under the guise of promoting competition. It’s a discriminatory system that hurts consumers and innovation alike.”

If Brazil wants a trade deal with the U.S., this needs to stop now. The Trump administration is making clear that it will defend American companies from foreign exploitation, whether it’s coming from Brussels or Brasília.

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