President Sanction Digital ECA, establishes tax exemption for data centers and regulates online competition
President Luiz Inácio Lula da Silva (PT) sanctioned this Wednesday (17.Set.2025) Digital ECA, the result of adultization PL, which creates rules to protect children and adolescents in the digital environment. At the same event, the government took the opportunity to announce competition -oriented measures in digital markets and attract data infrastructure investments.
The package includes an MP (Provisional Measure) to institute the Redata (Special Taxation Regime for Datacenter Services in Brazil) and the submission to the Congress of a PL (Bill) on Digital Competition.
What was signed:
- PL 2628/2022 Sanction – Creates rules for protection of children and adolescents in the digital environment; ANPD becomes an independent agency;
- Provisional measure of the newsroom – It is the National Data Centers Policy. It establishes special tax regime, with exemption of PIS, COFINS, IPI and counterparts in sustainability, innovation and minimum supply of 10% of the ability to the domestic market. Applies in advance benefits established in the tax reform. It must be approved by Congress within 120 days or it is valid.
- Big Techs Economic Regulation Bill – Changes the Brazilian Competition Defense System to allow Cade to designate large digital platforms of “systemic relevance” and impose specific rules on them.
According to the government, the 3 ongoing projects are based on digital competition, datacenters attraction and future regulation of artificial intelligence.
The assessment is that the package represents a strategic step to consolidate the digital economy. The perspective is to attract up to $ 2 trillion in investments and mark Brazil’s presence in the global technological agenda.
“They are a good start to talk about digital economy that will guide the investments of the 21st century”in the words of the Minister of Finance, Fernando Haddad.
Haddad also stated that the competition debate in the digital sector “started long before the tariff.” He argued that it is the duty of the state “Regulate such a concentrated sector, preventing practices that prevent small business and large business”. He stressed that he wants to bring datacers to Brazil.
President Lula highlighted in his speech the sovereignty of Brazil and stated that the measures adopted show that there is no veto to foreign companies, provided they respect national legislation.
“I hope President Trump is listening to this act, or that someone who speaks to him will seriously pass the message: here there is no veto to any company, any country, who wants to invest and produce in Brazil within the law.”said Lula.
