*Per Marcelo Almeida
Digital platforms have become an integral part of our everyday lives, encompassing a wide range of online services and activities.
The rapid growth and evolution of technologies have brought a series of regulatory challenges. In this article, we will explore four challenges faced by regulating digital platforms in Brazil.
1. Consumer Protection
One of the most pressing areas in terms of regulating digital platforms is consumer protection. Platforms act as intermediaries in various transactions, from purchasing products to contracting services.
We currently do not have legal frameworks for digital platforms that aim to protect consumers, however this does not mean lack of protection. The National Consumer Protection System, coordinated by the Ministry of Justice and Public Security, plays a crucial role in this scenario. Through the application of consumer protection laws, such as the Consumer Protection Code, we seek to ensure that online transactions are transparent, fair and safe.
One of the main challenges is the need to adapt existing regulations to the nuances of online transactions. O Bill 2168/2022, which deals with digital platforms, limits itself to handing over the regulatory competence of digital platforms to the National Telecommunications Agency without addressing consumer protection as a paradigm.
Having the consumer at the center of the discussion is essential for the development of public actions related to false product reviews, returns and refunds, dynamic pricing practices and the quality of products and services offered on platforms, among others.
2. Data Privacy: Protecting Personal Information in a Connected World
The collection and use of personal data is an essential part of the operations of many digital platforms. Growing concerns about data privacy led to the enactment of the General Personal Data Protection Law in Brazil and the establishment of the National Data Protection Authority.
One of the main regulatory challenges in operating data via a digital platform is balancing the need to protect users' privacy with the legitimate need for companies to use data to improve their services. This requires setting clear standards for obtaining consent, adequately anonymizing data, and adequately reporting data breaches.
Organizing centralized competences in regulation is essential to guarantee legal security and economic and social development. Multiplying regulators without analyzing the risks can increase problems and distance them from solutions. Therefore, it is essential to protect data on digital platforms to provide a regulated space inviting to innovation, technology and the economy.
3. Competition: Promoting a Fair Market Environment
Many digital platforms operate in strategic economic sectors such as e-commerce and technology services. As a result, competition and antitrust issues have become increasingly relevant.
The Administrative Council for Economic Defense (CADE) is responsible for dealing with cases of unfair competition and anti-competitive practices, including those involving digital platforms. One of the key challenges is dealing with platforms that hold a dominant position in the market and can abuse this position to harm competition.
This involves analyzing practices such as favoring own products, contractual restrictions that prevent commercial partners from working with competitors, and acquisitions of competing companies. Effective regulation must ensure that competition is preserved to benefit consumers and promote innovation.
4. Online Content: Addressing Misinformation and Hate Speech
Digital platforms also play a fundamental role in disseminating information and communicating online. This raises concerns about harmful content such as misinformation and hate speech, which can have serious social and political impacts.
It is essential to search for dialogue mechanisms between public and private agents in order to combat so-called 'fake news', via encouraged self-regulation.
The regulation of online content is a highly controversial area, involving issues of freedom of expression and censorship. The dialogue between public and private actors is the way to achieve balance in combating hate speech, disinformation and preserving freedom of expression.
Conclusion
Digital platforms have profoundly transformed the way we live, work and interact. In Brazil, as around the world, regulatory authorities face significant challenges when dealing with these constantly evolving technologies.
Consumer protection, data privacy, fair competition and online content regulation are just some of the critical areas that require effective regulation. To face these challenges, an interdisciplinary and collaborative approach is essential, involving various regulatory agencies, government bodies, technology companies, civil society and the international community.
As the digital landscape continues to develop, regulation must be flexible enough to adapt to new technologies and business models while protecting public interests and promoting a fair and secure market environment. Only then can we reap the benefits of digital platforms while mitigating the risks associated with them.
*Marcelo Almeida is Director of Government and Institutional Relations at the Brazilian Software Association – ABES.
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