Lawmakers in the United States are raising concerns about a new law being considered in Brazil. The proposed law would put strict rules on digital markets, especially ones controlled by American tech companies. Some say this move is similar to what Europe has already done, and they warn it could hurt U.S. businesses and damage trade ties between the two countries.
Representative Scott Fitzgerald, a Republican from Wisconsin, says Brazil should rethink the plan. He believes the U.S. should push back during trade talks. “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,” he said.
The term “DMA-style” refers to the Digital Markets Act, or DMA, passed by the European Union in 2023. That law gave European officials the power to label big tech companies as “gatekeepers.” These are companies that provide platforms others must use to reach customers—such as app stores, search engines, and social networks. The law says gatekeepers have too much control and must follow special rules.
The six companies labeled as gatekeepers in Europe are Alphabet (Google’s parent company), Amazon, Apple, ByteDance (which owns TikTok), Meta (which owns Facebook), and Microsoft. All of them are American companies, except for ByteDance, which is Chinese.
The DMA allows Europe to fine these companies large amounts of money if they break the rules. A single violation can cost up to 10% of a company’s total yearly earnings. That number goes up to 20% for repeat violations. Even though the law is European, the fines are based on global profits, which means they hit these companies hard.
President Donald Trump has been vocal in opposing these kinds of foreign laws. He says they are unfair to American companies and are meant to weaken U.S. influence in tech. On social media, Trump 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.”
Now, experts believe Brazil is following Europe’s lead. Ashley Baker, the executive director of the Committee for Justice, says this would be a mistake. “The Digital Markets Act is bad policy,” she said. “It was a blunder when Europe pursued it, and Brazil attempting to import that approach to the western hemisphere is bad for their prospects of reaching a trade deal with the United States.”
The concern is not just about fairness. It’s also about the bigger picture. If Brazil passes this law, it could make trade negotiations with the U.S. more difficult. The United States is currently working on a trade agreement with Brazil, and tech regulation could become a sticking point.
Michael Toth, research director at the Civitas Institute, says these kinds of laws don’t actually help competition. Instead, he argues, they punish success. “Brazil’s proposed digital markets bill unfairly targets U.S. technology companies under the guise of promoting competition,” Toth said. “By replicating Europe’s flawed model, it creates a discriminatory system that hurts consumers and innovation.”
Apple shares that view. The company says the DMA in Europe hasn’t helped smaller companies. Instead, it allows large European firms to twist the rules to their own benefit. “Instead of competing by innovating, already successful companies are twisting the law to suit their own agendas,” said Apple in a statement.
As Brazil debates its version of the law, the U.S. will likely make clear that such a move could carry consequences. President Trump’s trade team has already made it a priority to stop unfair digital rules in Europe, and they may now do the same with Brazil.
The outcome matters not just for tech companies, but for millions of Americans who rely on these platforms every day. It also raises questions about how much power other countries should have over American businesses—and whether the U.S. government should do more to protect them.
