Author: Fabio Fernandes

The EU’s 2025 Work Plan: What It Means for Consumer Choice

The European Commission’s 2025 Work Programme, titled “Moving Forward Together: A Bolder, Simpler, Faster Union,” outlines key priorities that will shape policies impacting consumers across the continent. As consumer advocates, we at the Consumer Choice Center (CCC) are closely analyzing these plans to ensure they prioritize innovation, consumer choice, and regulatory simplicity rather than burdening citizens and businesses with excessive red tape.

We’ve categorized the most significant aspects under three pillars: Fit for Growth, Tech Innovation, and Lifestyle Choices.

Red Tape Loss

At the end of last year, we published a report on the Red Tape Loss, detailing how excessive bureaucracy and overregulation in Europe are not only driving up costs for consumers but also stifling innovation, limiting access to new products, and restricting service availability. You can read the full report here.

Learn more

1. Fit for Growth: A Competitive and Consumer-Friendly Market

The EU recognizes that bureaucracy and overregulation have stifled economic growth and entrepreneurship. The 2025 Work Programme sets out several measures aimed at reducing burdens on businesses and consumers, but will they be enough?

Regulatory Simplification and Investment Boosts

  • The Commission plans to reduce reporting obligations by at least 25% and by 35% for SMEs, aiming to make compliance easier for businesses. A streamlined regulatory environment should, in theory, allow businesses to focus on innovation rather than paperwork.
  • The Industrial Decarbonization Accelerator Act and European Biotech Act aim to cut through bureaucratic delays in biotech and energy-intensive industries. While decarbonization is important, it must be done in a way that does not restrict consumer choice or drive up costs.
  • The Savings and Investment Union aims to boost capital market access for European businesses, which could help lower prices and increase product variety for consumers.

✅ Consumer Win: Less red tape means faster innovation and more choices.
⚠️ Risk: Will the EU truly simplify regulations, or just create different ones?

2. Tech Innovation: A Digital Future That Works for Consumers

The Commission is betting big on AI, quantum computing, and cross-border digital services, but risks remain if regulations become overly restrictive.

Digital Networks and AI Development

  • The Digital Networks Act will promote cross-border network operations, potentially reducing telecom costs for consumers.
  • The Apply AI Strategy and AI Factories Initiative aim to boost Europe’s AI sector, but it remains to be seen whether the upcoming AI regulations will encourage innovation or stifle it with excessive compliance costs.
  • European Business Wallets will simplify business-to-business and consumer transactions, potentially enhancing trust and reducing friction in digital purchases.

✅ Consumer Win: More connectivity and AI-powered services could enhance consumer experiences.
⚠️ Risk: If AI regulations are too restrictive, Europe may lag behind global competitors, limiting tech-driven consumer benefits.

3. Lifestyle Choices: A Balance Between Sustainability and Freedom

The EU is advancing sustainability policies, but consumer freedom must remain protected.

Food Security and Agriculture

  • The Vision for Agriculture and Food aims to ensure stable food prices and supply, but could lead to more intervention in food markets.
  • A proposed EU-wide biotechnology framework could allow for faster approval of new food innovations, benefiting consumers with healthier and more sustainable options.

Energy and Consumer Costs

  • The Clean Industrial Deal focuses on reducing emissions while maintaining competitiveness, but consumers must be protected from rising energy costs.
  • Plans to phase out Russian energy imports entirely could impact energy prices and availability, making affordability a key issue.

✅ Consumer Win: Sustainable food and energy policies can improve long-term affordability.
⚠️ Risk: Overregulation may lead to price increases and reduced choices in food and energy markets.

Conclusion: Will 2025 Be the Year of Consumer Choice?

While the EU’s work plan includes positive steps for economic simplification and technological innovation, the success of these initiatives will depend on how they are implemented.

Consumers benefit most when markets are free, competitive, and innovative—not when excessive regulations limit choices. The CCC will continue to monitor and advocate for policies that empower consumers, reduce bureaucratic burdens, and promote a vibrant, innovation-driven economy.

👉 Want to stay informed on consumer choice in the EU? Follow the Consumer Choice Center for updates and advocacy!

The EU and the Costs of Overregulation: A Call for Innovation

Commentators have long praised the European Union (EU) for its robust regulatory framework, which aims to protect consumers, ensure environmental sustainability, and maintain market fairness. However, this commitment to regulation is increasingly proving to be a double-edged sword. While well-intentioned, excessive rules often stifle innovation and impose significant opportunity costs on businesses and consumers, leaving the EU behind more innovation-driven economies like the United States and parts of Asia.

Innovation and Regulation: A Growing Divide  

The EU’s regulatory approach has often hindered progress in space exploration, robotics, artificial intelligence, and agriculture. While U.S. companies like SpaceX have revolutionized space travel with reusable rockets, the EU focuses on policies like tethered bottle caps to reduce plastic waste. Ironically, this directive has increased plastic use and caused billions of euros lost in business adaptation costs, diverting resources from areas like waste management innovation or advanced recycling.  

Similarly, in robotics, American firms like Boston Dynamics are pushing the boundaries of what machines can do, as the EU is stuck focusing on standardization, such as mandating universal USB-C chargers. Although such measures offer consumer convenience, they fail to address more significant technological leaps that could transform industries.  

U.S. companies are preparing to reintroduce supersonic travel in aviation, cutting transatlantic flight times in half. By contrast, EU countries such as France have banned certain short-haul flights to reduce carbon emissions. Although this policy is symbolic, affecting only a tiny fraction of transportation emissions, it highlights European preference for restrictions over advancements.  

The Costs of Bureaucracy  

Overregulation imposes costs that go beyond compliance. For example, adapting bottling lines to meet the EU’s tethered caps directive has cost companies between 2.7 and 8.5 billion euros —resources that could have been used to innovate products or improve environmental practices. Meanwhile, other regions invest heavily in technologies that promise transformative change. SpaceX’s $1.9 billion spent on reusable rockets demonstrates how funds can achieve global impact when directed toward innovation.  

In agriculture, the EU’s ambitious Farm2Fork strategy, which sought to reduce pesticide use and promote organic farming, stalled due to bureaucratic conflict between DG Sante and Agri, the two agencies responsible,  and left farmers at risk of not finding any buyers for their fresh produce and reeling from the shortage of effective fertilizers and livestock feed. The resulting delays and pushback from agricultural communities reflect a broader issue: regulations designed without adequate consideration of practical implementation can do more harm than good.  

A Path Forward  

The EU must shift its regulatory philosophy to prioritize innovation without compromising its goals of sustainability and fairness. Policymakers must focus on creating environments that enable technological breakthroughs, whether through streamlining approval processes, fostering public-private collaborations, or investing in R&D.  

Environmental objectives and technological advancements should not be seen as opposing forces. The EU has an opportunity to champion innovations that address environmental challenges, such as improved recycling technologies or AI-powered efficiency tools, rather than focusing on restrictive measures like product bans.  

Innovate or Lag Behind  

The EU is at a crossroads. While its regulatory frameworks have provided safety and stability, an overemphasis on control leaves Europe isolated in an increasingly competitive global landscape. Other regions are investing in the technologies of tomorrow, from artificial intelligence to advanced robotics. At the same time,  Europe implements policies that stifle progress.  

The solution is not to abandon regulation but to rethink its role. Rules should enable, not hinder, progress. The EU must act decisively to reduce red tape, embrace innovation, and position itself as a global leader in shaping the future. The choice is clear: adapt and thrive or risk falling further behind.  

Red Tape Loss

We published a report on the Red Tape Loss, detailing how excessive bureaucracy and overregulation in Europe are not only driving up costs for consumers but also stifling innovation, limiting access to new products, and restricting service availability. You can read the full report here.

Learn more

France’s Nicotine Pouch Ban: A Step Backward for Public Health and Consumer Choice

The French Health Minister Geneviève Darrieussecq’s announcement to ban nicotine pouches disregards a valuable tool in the fight against smoking-related disease and, by extension, undermines consumer choice and public health.

The Consumer Choice Center advocates for policies grounded in harm reduction and consumer freedom, both of which are compromised by this ban. Nicotine pouches are proven, safer alternatives that help individuals quit smoking by providing a non-combustible, low-risk source of nicotine, similar to nicotine patches or gums but with greater appeal to adult consumers. Instead of enhancing public health, this decision risks pushing former smokers back to cigarettes or into unregulated markets where quality and safety are unmonitored​​.

Countries that support alternatives like nicotine pouches, alongside vaping products, have made meaningful strides toward lowering smoking rates and related health risks. For instance, smokeless nicotine products have contributed to reduced cancer and smoking-related mortality in Sweden, underscoring the effectiveness of such options in fostering a smoke-free society​.

France has an opportunity to lead with policies that prioritize science and harm reduction, supporting consumer access to less harmful products rather than pushing them out. The Consumer Choice Center urges the French government to revisit this decision and adopt evidence-based policies that align with modern public health goals: fewer smokers, lower health risks, and a true empowerment of consumer choice.

For a healthier future, let’s choose innovation over prohibition.

Some Innovate, Others Regulate

In the fast-paced world of technological advancement, innovation is often hailed as the key to progress. Yet, while some regions focus on pushing boundaries, others seem to prioritize regulation. The result? Companies in these areas end up spending more time adapting to rules than creating groundbreaking products that improve consumers’ lives.

Safeguard Your Finances: What to Do When Your Data is Compromised

In April 2024, a shocking breach occurred where cybercriminals managed to steal the data of nearly 2.9 billion individuals from National Public Data, exposing countless people to the serious risk of identity theft. This data breach means that hackers could use the stolen information to open credit accounts, amass debt, and leave innocent consumers to deal with the fallout.

Got Raw Milk? Moo-ving Beyond the Ban

In the digital age, the century-old tussle between raw and pasteurized milk has found a fiery new battleground on social platforms like Instagram and TikTok.

Flight Canceled or Delayed: Know Your Air Passenger Rights

Traveling by air can be both exciting and stressful, and one thing you should always be aware of as a passenger is your rights. These rights can vary significantly depending on where you’re flying from or to. In this blog post, we’ll explore air passenger rights in Brazil, Europe, and the United States to help you better understand what to expect in different situations.

Brazilian Air Passenger Rights

In Brazil, the National Civil Aviation Agency (ANAC) is the regulatory authority that oversees all matters related to flights. When it comes to air passenger rights, the key legislation you should be familiar with is ANAC Resolution No. 400.

ANAC Resolution No. 400 clearly outlines the responsibilities of airlines when flight-related issues occur. It also covers various passenger rights, specifying the types of assistance that airlines are obligated to provide in each situation.

When Does Consumer Protection Apply in Brazil?

  • Domestic flights within Brazil
  • International flights departing from a Brazilian airport
  • International flights arriving at a Brazilian airport
  • Connecting flights at a Brazilian airport
  • Any airline ticket issued in Brazil (even if the flight is operated abroad)

Your Rights in Brazil

  1. Information: In the event of a flight delay at the airport, the airline must promptly inform you of the cause of the delay and the new estimated departure time. They should also provide updates every 30 minutes.
  2. Right to Assistance: Whenever flights are delayed or canceled, the airline must provide material assistance to passengers. The type of assistance depends on the length of the delay after your original departure time:
    • From 1 hour: communication (internet, phone)
    • From 2 hours: food (voucher, meal, snack)
    • From 4 hours: accommodation in case of an overnight stay at the airport and round-trip transportation. If you are in your hometown, the airline may only offer transportation to your residence and back to the airport.
  3. Right to Refund or Re-accommodation: According to ANAC rules for flight cancellations or delays exceeding 4 hours, airlines must offer the following options to passengers:
    • Full ticket refund, including the airport tax OR
    • Re-accommodation on another flight operated by the same airline OR
    • Re-accommodation on a flight operated by another airline if there is no availability with the airline you purchased the ticket from OR
    • Rescheduling the flight for a new date and time at no cost
  4. Rights in Overbooking Situations: If your flight is overbooked, the airline will ask passengers to volunteer to give up their seats. Volunteering passengers may receive compensation, but the amount can be negotiated individually between the passenger and the airline. If no one volunteers, the airline can deny boarding to some passengers.
    • Domestic flights: R$1,300
    • International flights: R$2,600


European Air Passenger Rights

In the European Union (EU) and associated territories like the UK, Iceland, Norway, and Switzerland, air passenger rights are governed by Regulation (EC) No. 261. This comprehensive legislation, adopted in 2004, applies to all passengers departing from or arriving at airports within these areas.

Key Rights in Europe

Right to Information: Airlines must provide information to passengers at check-in counters in all airports where they operate.

Right to Assistance: Passengers have the right to free material assistance from the airline in the event of flight disruptions. While awaiting a solution, the airline should provide:

  • Drinks and meals
  • Two communications (phone, fax, or email)
  • Accommodation if the alternative flight is not on the same day
  • Transportation to and from the airport and the accommodation location

If the airline does not offer this assistance, keep all receipts for additional expenses, as you may be eligible for reimbursement.

Compensation:

Compensation for delayed flights: Any delay exceeding three hours entitles passengers to compensation. The amount depends on the delay time and flight distance.

  • Less than 3 hours: No compensation
  • 3 to 4 hours: €250 to €400 depending on the flight distance
  • Over 4 hours: €250 to €600 depending on the flight distance
  • Never reached the destination: €250 to €600 depending on the flight distance

Compensation for canceled flights: If the airline notifies you of a flight cancellation less than 14 days before the scheduled departure, you may be entitled to compensation based on the distance and waiting time.

The statute of limitations for claiming compensation varies from 1 to 10 years, depending on the European country, so be sure to check your specific case.


U.S. Air Passenger Rights

Air travelers have certain rights in the United States, but they differ from those in Brazil and Europe. While U.S. airlines are required to compensate passengers for overbooking situations, there are no mandatory regulations for passengers affected by long delays or cancellations.

Overbooking Compensation in the U.S.: If you’re denied boarding due to overbooking in the U.S., you could be entitled to up to $1,350 in compensation.

Baggage Issues in U.S. Domestic Flights: Passengers on U.S. domestic flights have clear rights when it comes to damaged, delayed, or lost baggage. You can learn more about your rights regarding delayed baggage on our website.


Tips for Dealing with Air Travel Issues Worldwide

No matter where you’re flying, here are some valuable tips for dealing with air travel disruptions:

  • Don’t wait for the airline to come to you; seek assistance proactively.
  • Take immediate action to resolve the issue and then seek reimbursement.
  • Avoid checking baggage whenever possible, as canceled flights usually hold your checked luggage until a new flight is allocated to you.
  • File a complaint immediately, preferably in writing, and attach all documentation. Take photos of airport boards and keep any evidence that can help support your case. Record conversations with airline staff if necessary.
  • Consider purchasing travel insurance, especially when traveling to non-EU countries, as almost all of them offer reimbursement or composition in case of delayed and canceled flights.
  • Review the coverage and conditions of your credit card’s travel insurance.

Remember, being aware of your air passenger rights can make your travel experience smoother and help you get compensation when things go wrong. Safe travels!

How to Fight Inflation: 6 Money-Saving Tips for 2022

Don’t think you’re powerless against inflation. Try these financial strategies in six different areas of your spending life.

It’s no secret that inflation has battered a lot of bank accounts in the last year. Some prices have been going down lately, like gas, but other prices, like that for food, are still climbing. 

If you’re looking to save money, here are some money-saving tips in six areas of your spending life.

Travel

Inflation-fighting tip: Remember that you always pay for convenience.

Convenience costs more when it comes to virtually any purchase you make, but it’s especially costly when you’re traveling. John Shrewsbury, a financial advisor and co-owner of GenWealth Financial Advisors in Bryant, Arkansas, often goes on business trips and says that he has observed what many of us likely have: “Convenience comes at a significant price.”

He cites staying at a hotel near your destination as often being far higher a price than staying at a lower price a bit further away.

“Most airlines charge for luggage, so packing efficiently could save $30 to $50 bucks,” Shrewsbury says. “And, on that rental car, pumping your own gas to fill up right before you return will save several dollars over letting the rental company fill it and charge you.”

He has other examples. “Eating at the hotel is likely to be more expensive than at a nearby restaurant. Also, food at the airport is usually more expensive because they have a captive audience, so if possible, eat before you leave for the plane.”

Granted, plenty of travelers are willing to pay more for the convenience, and if you are, that’s fine. But it is something to remember, if you’re looking to save money on travel. If you’re willing to be a little inconvenienced, you can probably go farther for less.

Groceries

Inflation-fighting tip: Shop strategically for your food.

That may not sound like much of a tip. We all know that we need to shop strategically, don’t we? Still, we can always use a pep talk. It isn’t easy shopping strategically for food. We may not be hunting and gathering in the way our ancestors did, but you still have to bargain hunt and scour the landscape for deals. It can be mind-numbing and stressful.

Read the full text here

Money-saving tips for consumers during high inflation

In the view of Fabio Fernandes, Head of Communications at the Consumer Choice Center, a consumer advocacy group and nonprofit organization, consumers looking to gain a solid financial footing in this uncertain economic environment should try to reduce their spending habits on non-essential items.

“Inflation hurts low-income consumers the most since families at the lower end of the income distribution spend a substantial share of their income on core needs. Nearly 75% of expenditures for low-income families go to food, transportation, rent, utilities, and cellphone service.”

Gas Prices:

“Unfortunately, gas prices are still high in many parts of the United States, and there are very few things car-dependent consumers can do to minimize its impact on the household budget. Our suggestion is to plan your drive for when you’re running errands by tracing a route that would reduce needless extra miles.” 

“Another obvious suggestion is driving less. The work-from-home trend is stronger than ever, and if your job allows, ask your employer to stay at home a couple of days a week.”

Inside the Home:

“When it comes to inflation on household items, the greatest villains are utilities. Consumers can save energy by reducing the number of times they do laundry or run the dishwasher, or even by changing a couple of degrees the thermostat.”

“Consumers who have been using the same providers for electricity, gas, and especially broadband tend to get too comfortable. If you live in an area with multiple providers for any of those services, don’t hesitate to call them and listen to their offers. New customers enjoy special prices and perks that old clients don’t, so looking at the competition might be a money saver.”

Subscriptions:

“Digital subscriptions can be a rabbit hole and a financial drain. Get rid of those charges you get every month for apps you don’t use and don’t necessarily need. Reducing the number of streaming subscriptions or consolidating into family plans can help you save the big bucks in a year. ”

“It’s the ideal time to negotiate your subscriptions or membership fees. Many companies are offering reduced prices or even a couple of months free when you try to cancel your subscription. However, don’t bluff. List the subscriptions and memberships you can live without and when offered a deal, consider the weight of the new price on your household budget.”

Shopping:

“Sound financial advice for consumers looking to save money when shopping is to go with a plan and stick to your shopping list. Consumers should be comparing prices, planning their meals, and clipping coupons to maximize their savings. These not only make budgeting easier but more importantly, most impulse purchases can be avoided this way.”

“There’s always the advice to buy in bulk. You can share the cost of large packages with friends and family and thus get excellent deals. Add to that coupons, store membership, and fidelity cards, and consumers could get additional discounts while accumulating points, or my favorite, getting cashback for every dollar spent.”

When asked about Buy Now Pay Later, Fernandes said: “Shoppers need to be aware that a missed installment payment could mean late fees and other penalties. It could also be reported to the credit bureaus and end up on a consumer’s credit report.”

“With soaring inflation, buying and paying now is much better if you have disposable income. Paying later sometimes means putting an additional burden on your household budget when inflation rises further, and wages can’t keep up.” Fernandes continued.

“The reality is that there is very little room in anyone’s budget for wants right now,” concluded Fernandes.

Some back-to-school shoppers turn to BNPL to cover higher prices: TransUnion survey

Some shoppers dealing with increased prices on back-to-school items are using everything in their arsenals to tackle the extra costs, including buy now, pay later (BNPL), according to recent survey data.

New research from TransUnion found that 55% of consumers said they expected to spend more on their back-to-school shopping this year, with inflation driving the increase. 

And more than one-third of these consumers said they have already used or plan to use BNPL — which is an interest-free installment payment plan that’s available at many major retailers — to break up the cost of their back-to-school purchases. The back-to-school shopping trends research was conducted via an online survey of 1,000 adults in July 2022.

Of the consumers using BNPL for back-to-school shopping, nearly two-thirds of them, or 62%, said they are doing so to buy books and other items needed for school, while 52% said they are using it to buy an expensive school-related item, like a computer, the survey said.  

Millennials are by far the largest group of consumers opting to use BNPL for this purpose, with 47% of that generation using the alternative financing option for their back-to-school shopping, according to TransUnion. 

“Families are especially hard hit by inflation, and back-to-school shopping represents a significant cost on top of everyday expenses,” Cecilia Seiden, vice president of TransUnion’s retail business, said. “The ability to spread those payments out over time, interest-free, is a very attractive option to parents and students who are already stretched thin financially.”

If you are looking for ways to reduce your expenses and put money back in your wallet, you could consider using a personal loan to pay off high-interest debt at a lower rate, helping you save money each month. You can visit Credible to find your personalized interest rate today.

Read the full text here

FED AUMENTA AS TAXAS DE JUROS: O QUE ISSO SIGNIFICA PARA OS CONSUMIDORES?

Na quarta-feira (27), o Federal Reserve elevou sua taxa básica de juros em robustos três quartos de ponto pela segunda vez consecutiva em seu esforço mais agressivo em três décadas para domar a alta inflação. Na visão de Fabio Fernandes, Head de Comunicação do Consumer Choice Center, os juros mais altos terão consequências dolorosas para os consumidores.

“Temos observado o impacto da inflação sobre os consumidores americanos, e isso os está prejudicando, especialmente porque está superando o crescimento salarial historicamente forte. A inflação mais alta significa que o Fed precisa agir de forma mais agressiva, que foi o que fez hoje.”

“No entanto, o remédio também é doloroso para os consumidores. Taxas de juros mais altas se traduzem em financiamentos mais caros para os mutuários. Isso vale para hipotecas, empréstimos estudantis, empréstimos para automóveis e cartões de crédito, e quanto mais altas as taxas, mais os consumidores têm que pagar”, disse Fernandes

“Os consumidores estão sendo pressionados por preços muito mais altos para praticamente tudo em suas listas de compras e, como muitos consumidores não têm muito dinheiro extra em seus orçamentos, empréstimos a taxas mais altas prejudicarão especialmente as famílias de baixa renda”, acrescentou Fernandes.

“De fato, a inflação continua sendo a principal preocupação dos consumidores e, com o crescente medo com relação ao rumo que a economia está seguindo, os consumidores passarão a gastar com mais cautela”, concluiu Fernandes

Originally published here

Success Story: Reducing the burden of compulsory licensing on Brazilian consumers

The Issue:

In 2021, the Senate introduced a bill (Projeto de Lei n° 12, de 2021) to suspend the obligations of the Federative Republic of Brazil to implement or apply the TRIPS Agreement in relation to the prevention, containment or treatment of COVID-19 while the public health emergency remained in force. In other words, a law that would introduce compulsory licensing for all COVID-19 vaccines and technologies – something that was not only unprecedented but would also go against the TRIPS agreement, to which Brazil is a signatory.

The bill was passed in Congress in both houses and went to the approval of President Jair Bolsonaro. However, the President vetoed three key paragraphs:

8, “The holder of the patent or patent application subject to a compulsory license must provide the necessary and sufficient information for the effective reproduction of the object protected by the patent.”

9, “If there is biological material essential for the practical realisation of the object protected by the patent or by the patent application, the holder must provide such material to the licensee”, and 

10, Imposed penalties if the holder of the patent or patent application refuses to provide the information or biological material

The redacted bill went back to Congress to further discussion and final voting that could have overridden the veto and reinstated the removed paragraphs.

The entire bill n° 12 of 2021, but particularly paragraphs 8, 9 and 10, would have had terrible consequences for consumers and patients in Brazil, depriving them of future vaccines and medical innovations. The Consumer Choice Center promptly intervened to protect consumers.

CCC Response:

We understood that the vetoed provisions were simply unprecedented and inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights and denied innovators the certainty and predictability needed to confidently invest and accelerate the launch of new medicines in Brazil. Consequently, the bill would have deprived consumers and patients of life-saving drugs and vaccines because of government-created legal uncertainty. 

The moment the bill hit the Congressional floor, we began working with members of Congress and the Caucus to inform them about the risks of such legislation and the unnecessary burden to consumers and to persuade the policymakers to keep the vetoes. We sent letters presenting our arguments to both the Presidents of the House and the Senate.

Furthermore, we put the discussion to public debate, reacting, commenting and giving our expert opinion to news outlets. We were featured in a handful of influential media outlets, including Metropolis’s website, the most important about Brazil politics.

We argued that Intellectual Property was never a barrier to accessing the COVID-19 vaccines. In fact, it facilitated the collaborations among manufacturers and suppliers necessary to promote investment and access. An example of such collaboration includes the Pfizer Inc./BioNTech SE agreement with Brazilian biopharmaceutical company Eurofarma Laboratórios SA to manufacture COVID-19 mRNA vaccines for distribution within Latin America.

Pursuing flawed compulsory licensing initiatives coupled with mandatory technology transfers would have hindered Brazil’s desire to foster innovation and facilitate access to medicines. Indeed, it called into question how seriously Brazil took its international commitments and obligations.

The Outcome:

On July 5th, 2022, the bill was passed, maintaining the vetoes and thus reducing the impact and burden to consumers of the compulsory licensing. 

Even though the bill was enacted into law, we were able to keep the veto of the more egregious elements of PL nº 12/2021 including (1) provisions related to mandatory technology transfer (including trade secrets, technical information, and know-how) and the sharing of biological material related to an issued compulsory license; and (2) a provision that would have applied compulsory licensing mechanisms to COVID-19 related products, including treatments and vaccines.

Consumers in Brazil may now enjoy, for a bit longer, the marvellous and proven benefits and innovations that strong IP laws provide. We’ll be watching closely if new developments in this area arise.

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