Anatel’s Regulatory Expansion in the Digital Ecosystem: Implications for Fair Share
The National Telecommunications Agency (Anatel) recently introduced a draft bill seeking to broaden its regulatory authority beyond traditional telecommunications to encompass digital platforms and content distribution networks (CDNs). The proposal was submitted to the Finance and Sports Ministries in early November 2024.
This initiative arises amidst pressing challenges in digital governance, including the regulation of online betting platforms and social networks, which operate within distinct regulatory ecosystems. Anatel’s president, Carlos Baigorri, argues that this expansion is essential to addressing legal gaps that hinder the agency's ability to act, particularly in cases involving the blocking and inspection of services outside the traditional telecommunications framework.
This move aligns with a global trend of regulatory bodies adapting to the complexities of the digital age, especially in light of the influence of social networks. For example, the European Union has adopted comprehensive strategies to regulate digital platforms, CDNs, and Internet Service Providers (ISPs), focusing on greater transparency and accountability.
While Anatel defends the necessity of expanding its remit to meet the demands of the digital ecosystem, experts caution against the risks of consolidating additional regulatory power within the agency. This concern is especially pertinent given recent controversies over “fair share” policies. Such centralization could pave the way for market concentration and diminished competition, as seen in past debates published on this blog over Anatel’s stance on network fees.
Moreover, the inclusion of CDNs under Anatel’s regulatory umbrella also raises significant concerns about the potential impact on online content delivery. Essential networks like Cloudflare, which underpin the efficiency, security, and speed of the internet in Brazil and globally, may face higher operating costs under these conditions. This would likely result in costlier and less accessible services for users.
If approved, Anatel’s proposal could mark a negative turning point for the future of digital governance in Brazil. While the official narrative emphasizes modernization and transparency, the actual implications may result in setbacks for a free and open internet. The future of the internet in Brazil hangs in the balance. Safeguarding net neutrality, fostering innovation, protecting consumers from policies that prioritize the economic interests of a few at the expense of collective well-being, and preventing the concentration of regulatory power in Anatel – particularly over markets beyond its legal scope – are increasingly urgent priorities.