A report shows that Trump’s move to investigate Brazil follows Big Tech’s interests

Image created on Canva Pro by Global Voices. Fair use.

This article, written by Natalia Viana and edited by Bruno Fonseca, was originally published by Agência Pública on July 10, 2025. It was edited for length and context, and is republished here under a partnership agreement with Global Voices.

A large lobbying group funded by US-based Big Tech companies — including Google, Meta, Microsoft, Amazon, Uber, Apple, Pinterest, and eBay — is linked to US President Donald Trump’s threat to investigate Brazil’s commercial trade practices. The investigation was announced alongside the decision to increase import tariffs on Brazilian products last July.

This group is the CCIA, an acronym for Computer and Communications Industry Association. Just minutes after Trump announced the tariffs against Brazil on his social media platform Truth Social, the group published a note applauding it.

“CCIA welcomes the attention of the administration toward Brazil’s barriers to U.S. digital exports through a deliberative Section 301 investigation into the harms caused by discriminatory treatment. […] We look forward to these actions bringing relief for industry operations in Brazil and bringing back open and fair trade between these two important partners,” said CCIA President and CEO Matt Schruers in a note published on their site.

Section 301, which the CCIA cites, is a mechanism from the 1974 US Trade Act that allows for the investigation of unfair trade practices and imposition of penalties. Trump used this act to order an investigation into Brazil.

At the end of 2024, the CCIA compiled a list of all the actions taken by the Brazilian government and legislature that would go against the interests of Big Tech companies. The report was presented to the US Department of Commerce in October 2024. A representative of this department, Jamieson Greer, will conduct the investigation initiated by Trump using Section 301.

In this report, the lobby group calls for the US government to monitor, question, and act against a variety of measures taken in Brazil, from the suspension of X (formerly Twitter) run by Elon Musk, the General Law on the Protection of Personal Data (LGPD), and even the “blouses tax” — imposed on international purchases costing under USD 50.

Below is a summary of the main points of the lobbyists’ report.

Lobby group comes out in defense of Musk’s platform

The group highlighted the suspension of Elon Musk’s X, ordered by the Supreme Court (STF) in August 2024 for refusing to name a legal representative in Brazil, as well as the USD 5 million fine that the company had to pay.

The report says “this drastic step has implications for the broader investment landscape and could be copied by authoritarian regimes seeking to leverage control over content online to restrict freedom of speech or political dissent.”

The lobbying group further argued that cases like this “undermine the free flow of services and data” and the “open and globally connected internet.”

Criticism of the General Law on Data Protection and other proposals

The group opposes Brazilian legislative proposals for data protection, and says that the 2018 LGPD follows the European Union’s legislative model but with stricter rules for data transfers. 

The report calls for the US government to monitor the implementation of the law and suggests that the country’s Department of Commerce representative “should urge Brazil to deem privacy protections available in the United States as adequate under Brazilian law.”

The CCIA also asks that the US government “should urge Brazil to reject” the proposed bill No. 4.097/2023, which would amend a 2014 law to implement new “digital sovereignty” measures under the LGPD. Under this legislation, tech companies offering services in Brazil would have local ownership and control obligations, such as being required to have 25 percent of the voting share capital held by Brazilian citizens.  

Against the “blouses tax”

The lobbying group also questioned the law that became known as the blouses tax,” implemented in August 2024. It gained this nickname as it relates to purchases such as cheaper clothes on international websites. 

The CCIA argues that taxation increases the time and cost of the customs clearance process and acts as a barrier to e-commerce. The group argues for a minimum purchase price of USD 100 to begin taxation. It also calls on the US government to pressure Brazil, suggesting that the tax “could be inconsistent with Brazil's obligations under the General Agreement on Tariffs and Trade (GATT)” treaty.

Criticism of the bill to regulate AI

The Artificial Intelligence (AI) regulation bill, PL 2338/2023, approved in the Brazilian senate in late 2024, is also opposed by the lobbying group, which called it concerning. It then went to the Chamber of Deputies for consideration. The platforms say it imposes “excessive reporting obligations for high-risk and low-risk AI products, neither of which is well defined.”

One of the main complaints is about mandatory copyright compensation, “that extend[s] far beyond proposals floated elsewhere globally, which would require developers to provide compensation for any Brazilian content used to train AI models.”

The group said that this will lead to AI applications not being developed in Brazil and says that the US government “should monitor this regime to ensure that the framework is aligned with international agreements and avoid discriminatory treatment of US services and suppliers.” 

Opposition to Anatel’s regulation

The CCIA also criticized the PL 2768/2022, authored by Deputy João Maia (PL, Liberal Party, the same as former president Jair Bolsonaro), which would authorize the National Telecommunications Agency (Anatel) to regulate digital platforms. For Big Tech companies, this would equip Anatel “with broad discretionary authority to set the definitions and draft rules.” 

Criticism of taxes on digital products and services

The report points to the Provisional Measure No. 1262/24, from Brazil's Ministry of Finance, which establishes a minimum tax of 15 percent on multinationals operating in the country. For the group, “the government appears intent on seeking new revenue streams for its coffers by disproportionately taxing foreign corporations.” Big Tech companies are asking the office of the US Trade Representative to monitor developments in this matter. 

Against taxes on internet services

The group said that in 2023, Anatel launched a public consultation on the regulation of “Value-Added Services,” including exploring the feasibility and appropriateness of internet usage fees in Brazil.

CCIA also criticizes the legislation PL 2804/2024, authored by Senator Angelo Coronel (PSD-Social Democratic Party) and currently passing through parliament, which proposes that digital platforms contribute 5 percent of their revenue to the Fund for Universalizing Services in  Telecommunications, managed by Anatel. According to the group, “this law could violate the principle of competitive neutrality under the WTO’s [World Trade Organization] rules governing universal service, as Brazilian suppliers would receive preferential treatment at the expense of foreign suppliers that are unable to access the Fund (including through affiliates).”

The text “urges the Trade Representative to remain vigilant as Brazil continues to pursue network usage fees.” 

Looking at the new rules of the reduced tariff regime

The report points to changes in the Ex-Tariff regime, a mechanism that allows for the reduction of taxes for negotiations with foreign companies in the computer and telecommunications sector. 

A decision by Brazil's ministry of development, industry, trade and services in August 2023 determined that, in order to obtain exemptions from taxes on imports, multinational companies operating in Brazil must have an investment plan and show details about equipment needs, productivity gains, and the technologies brought with their product.

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