BRASILIA, Oct 10 (Reuters) - Brazil's government on

Thursday recommended a reform to its competition law that would

allow antitrust authority CADE to designate certain digital

platforms as systemically relevant, subjecting them to new

obligations if necessary.

WHY IT'S IMPORTANT

Brazil's Finance Ministry says that local legislation needs

to be equipped with more tools to address a new reality where

big tech firms, due to their size and market power, inhibit

competition.

The government mentions practices such as exclusivity

agreements, "killer acquisitions," and self-preferencing, where

a company's own products, or services, appear first in internet

searches.

DETAILS

New requirements would include pre-merger notifications,

transparency rules for end-users and businesses regarding

commercially relevant information on service and product usage

and offerings, and a mandate to disclose changes in terms of

service or conditions.

ADDITIONAL BACKGROUND

The government said that the proposed legislative change is

a middle ground between the U.S. and the European Union models

for regulating large tech platforms, drawing inspiration from

practices adopted in Japan, the United Kingdom and Germany.

WHAT'S NEXT

For the changes to take effect, the government must decide

whether to submit the recommendations as a new bill to Congress

or introduce a substitute text that could be incorporated into

an existing legislative proposal already under consideration.

KEY QUOTES

"What we are proposing here is very reasonable and

balanced," Economic Reforms Secretary Marcos Pinto told a press

conference, adding he predicts action on the matter to be taken

by the end of this year.

"Our goal is not to hinder innovation, impose unnecessary

costs or create bureaucracy where it's not needed. What we want

is to uphold a fundamental value in the economy, which is

competition."