Anatel Threatens Amazon and Mercado Livre Over Pirate Goods

Brazilian authorities are escalating their crackdown on unauthorized electronics, threatening to block major e-commerce platforms. This move targets the sale of unapproved products, posing risks to consumers and legitimate businesses.

The Crackdown Begins

Most major electronic retailers have agreed to the regulatory measures, but Amazon and Mercado Livre have not. The National Telecommunications Agency (Anatel) is at odds with these e-commerce companies. Anatel seeks to shut down the websites, citing $50 million in fines, according to Anatel President Carlos Baigorri.

Why This Matters

Unapproved products are those that Anatel has not assessed. These items are considered irregular because they have not undergone safety, operation, and compliance tests. The agency warns these products endanger consumer safety and telecommunications networks.

E-Commerce Response

Mercado Livre says it actively eliminates unauthorized product listings. François Martins, the company’s director of government relations, states that they combat fraud. A recent Anatel inspection at the company’s distribution centers discovered eight irregular cell phones out of a total of 245,000. He adds that selling “pirate” products doesn’t benefit anyone.

The sale of illegal products harms companies legally operating in Brazil. These devices often arrive in Brazil illegally, selling at lower prices. This creates unfair competition for official businesses, which pay taxes and offer technical support and warranties. The Brazilian Association of Electric and Electronic Industry (Abinee) estimates that the irregular mobile market in the country is 13%.

The Scope of the Problem

Humberto Barbato, the Chief Executive at Abinee, stated at an event last May, “The percentage is still very high. The ideal would be that this number would fall to around 5%.”

According to a 2024 report by the Brazilian Institute of Applied Economic Research, the illegal market for electronics in Brazil is estimated to be worth over $5 billion, fueling concerns about consumer safety and tax evasion (IPEA Study).

What’s Next?

The dispute highlights the ongoing battle to regulate e-commerce and protect consumers from potentially dangerous products. The outcome of this conflict will likely have wide-ranging implications.