For the Lula da Silva government, local legislation needs to be equipped with more tools to deal with a new reality in which big tech, due to its size and market power, inhibits competition.

Brazil's government on Thursday recommended an overhaul of its competition law that would allow antitrust authority CADE to designate certain digital platforms as systemically relevant, subjecting them to new obligations if necessary.

Brazil's Finance Ministry says local legislation needs more tools to deal with a new reality in which large technology companies, due to their size and market power, inhibit competition.

The government cited practices such as exclusivity agreements, "killer acquisitions" and self-preferencing, whereby a company's products or services appear first in internet searches.

The new requirements would include pre-merger notifications, transparency rules for end users and businesses regarding commercially relevant information about the use and offerings of services and products, and a mandate to disclose changes to terms of service.

The government says the proposed legislative change is a middle ground between the US and EU models for regulating large technology platforms, drawing inspiration from practices adopted in Japan, the UK and Germany.

"What we are proposing here is very reasonable and balanced," Economic Reforms Secretary Marcos Pinto said at a press conference, adding that he expects measures to be taken on the matter by the end of this year.