Smith Leads Effort to Address Brazil’s Discriminatory Digital Regulations
Today, Congressman Adrian Smith (R-NE-03), chair of the Ways and Means Subcommittee on Trade, led a letter with Judiciary Chairman Jim Jordan (R-OH-04) and 18 of their Republican colleagues urging the Trump Administration to address Brazil’s discriminatory actions against American companies.
In their letter to U.S. Trade Representative Jamieson Greer, lawmakers raised concerns about Brazil’s legislative framework, which would create special designations for digital companies based on thresholds that unfairly target American firms.
The lawmakers emphasized that the proposal could allow regulators to force changes to business models, require companies to forgo revenue, mandate access to proprietary technology, and compel platforms to open their services to third parties—potentially undermining innovation and American competitiveness abroad.
The lawmakers write: “In light of these priorities, we are concerned with Brazil’s proposed Fair Competition Act for Digital Markets (Bill No. 4675/2025), which would intentionally replicate the provisions of the European Union’s Digital Markets Act (DMA) by targeting successful U.S. digital companies with an onerous new regulatory regime. If passed, this law would empower foreign bureaucrats to dictate changes to the business model of our leading companies, and potentially force them to relinquish valuable intellectual property, resulting in billions in costs and undermining America’s global technological leadership by limiting the ability of U.S. innovators to invest and compete.”
In addition to Smith and Jordan, the letter was signed by U.S. Representatives Aaron Bean (R-FL-04), Claudia Tenney (R-NY-24), Randy Feenstra (R-IA-04), Vern Buchanan (R-FL-16), Beth Van Duyne (R-TX-24), Michelle Fischbach (R-MN-07), Scott Fitzgerald (R-WI-05), David Schweikert (R-AZ-01), Nathaniel Moran (R-TX-01), Darin LaHood (R-IL-18), Gregory Steube (R-FL-17), Kevin Hern (R-OK-01), Ron Estes (R-KS-04), Rudy Yakym (R-IL-02), Gregory Murphy (R-NC-03), Lloyd Smucker (R-PA-11), Carol Miller (R-WV-01), and Troy Nehls (R-TX-22).
Read the full letter here or below:
Dear Ambassador Greer:
Thank you for your continued commitment to advancing American technological leadership and defending innovative U.S. firms from discriminatory foreign acts, policies, and practices. This administration’s policies, including the 2025 Memorandum on Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties, make clear that the United States will stand behind its innovators and ensure they can compete on a level playing field abroad.
In light of these priorities, we are concerned with Brazil’s proposed Fair Competition Act for Digital Markets (Bill No. 4675/2025), which would intentionally replicate the provisions of the European Union’s Digital Markets Act (DMA) by targeting successful U.S. digital companies with an onerous new regulatory regime. If passed, this law would empower foreign bureaucrats to dictate changes to the business model of our leading companies, and potentially force them to relinquish valuable intellectual property, resulting in billions in costs and undermining America’s global technological leadership by limiting the ability of U.S. innovators to invest and compete.
USTR’s recently finalized Section 301 investigation into Brazil’s unfair trading practices highlighted several current policies in Brazil that undermine the competitiveness of U.S. companies engaged in digital trade, including fines and suspension orders on digital platforms and unfair market advantages granted to state-owned providers of digital payment services. It is particularly concerning that, at precisely the moment when actions related to this investigation are being finalized, Brazil is looking to expand its discriminatory policies rather than
consulting with the United States to resolve concerns. Should this measure advance, it would compound existing barriers to U.S. digital businesses operating in Brazil, and continue a disturbing trend in the proliferation of DMA-like measures that are blatantly discriminatory and in direct conflict with U.S. interests.
While this bill is the latest component of Brazil’s broader strategy of digital trade discrimination, we recognize that these issues are a growing threat around the world. We appreciate your efforts to address these global issues through negotiations of Agreements on Reciprocal Trade, the Joint Review of USMCA, and Section 301 investigations. As you continue this work, we urge you to ensure the Fair Competition Act for Digital Markets is addressed in any trade discussions with Brazil. We stand ready to support your Administration in its continued efforts to ensure fair treatment and open markets for American service providers, innovators, and digital creators.