Publications: Lilla Nóra Kiss

Rather than allow India’s dynamic high-tech and startup ecosystem to continue to flourish, the Draft Digital Competition Bill follows the path of overbearing competition policy taken by the EU, which lacks any leading digital firms. India should instead privilege the U.S. model of markets and dynamism.

Regulation in the digital sector should only be necessary to remedy market failure that cannot be addressed by the current legal framework, which simply is not true.

The artificial intelligence market in Canada is still in its early stages but is growing rapidly and becoming increasingly competitive. At this juncture, there is no clear evidence of market failure, substantial barriers to entry, or exclusionary practices that would necessitate intervention.

As Brazil crafts its own Digital Markets Act in the mold of the EU’s, it should be aware of the potential shortcomings and unsubstantiated advantages associated with such wide-ranging economic regulation within the digital market landscape.

Europe’s digital model may not be the best fit for Brazil. Bill 2768/2022, mirroring the EU’s experimental Digital Markets Act, could potentially hinder innovation rather than ignite it. Brazil’s digital landscape calls for a culture of innovation, not borrowed blueprints of unnecessary intervention.

The market for AR/VR technologies, though nascent, presents a multifaceted competitive landscape spanning hardware, software, and distribution. And the generative AI market is experiencing early-stage growth with no significant entry barriers evident, particularly concerning data, computational resources, and talent.

As the Digital Markets Act comes into effect, more jurisdictions are adopting similar laws to shoot for big tech targets, creating the “Brussels effect.”

Instead of enforcing existing competition laws and investing in its digital industries to promote innovation and healthy dynamic competition in the United Kingdom, the Digital Markets, Competition and Consumers Bill offers an overly broad and likely harmful solution to unproven problems.

As appetite for tech regulation continues to gain momentum, with more and more countries on the trail to adopt DMA-like rules, open questions abound about its potential impact on competition, innovation, and national technology competitiveness.

Brazil should step back from following the EU’s experimental and harmful DMA regime and at least wait before embarking on a similar policy.