Think about how this would apply to hacker news? Not all algorithmic bias is evil. If you want to avoid an echo chamber, design an algorithm to boost interesting content that missed the front page. That shouldn't render you vulnerable to legislation.

And would this allow Brazil to prosecute hacker news for cyber security violations if a user posts content regarding Flipper Zero or Japanese IC cards, or data breaches of Brazilian companies...

I think the line should be drawn at ads... and maybe even all profit centers of social media companies.