Antitrust in Brazil

Anticompetitive practices

The Brazilian Administrative Council For Economic Defense’s tribunal provides further guidance for the assessment of international cartels, indicating when they are considered able to produce effects in Brazil
Mattos Filho Veiga Filho Marrey Jr & Quiroga (New York)
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Mattos Filho, Veiga Filho, Marrey Jr. & Quiroga (Sao Paulo)
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Mattos Filho, Veiga Filho, Marrey Jr. & Quiroga (Sao Paulo)
CADE’s Tribunal provided, during judgment sessions held between August and November of 2016, further guidance for the assessment of international cartels, indicating when they are considered able to produce effects in Brazil, in breach of Brazilian competition law. These decisions were issued (...)

The Brazilian Superior Court of Justice limits the confidentiality of the Competition Authority’s leniency agreements (Εlectrolux)
Mattos Filho Veiga Filho Marrey Jr & Quiroga (New York)
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Mattos Filho, Veiga Filho, Marrey Jr. & Quiroga (Sao Paulo)
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Mattos Filho, Veiga Filho, Marrey Jr. & Quiroga (Brasilia)
The Brazilian Superior Court of Justice (“STJ”) has issued a ruling that seeks to limit the confidentiality of leniency agreements entered into with the Brazilian antitrust authority (“CADE”). Pursuant to the ruling, third parties may have access to such agreements and related materials (including (...)

The Brazilian CADE fines air cargo carriers for price fixing highlighting the importance of leniency program in the fight against cartels (Absa Aerolineas Brasileiras)
Brasilian Administrative Council for Economic Defense (CADE) (Brasilia)
Introduction CADE’s Tribunal condemned airlines ABSA Aerolineas Brasileiras S.A., Varig Logistica SA, American Airlines Inc., and Alitalia Linee Aeree Italiane S.P.A., plus seven individuals, for cartel formation in the international air cargo sector. The fines sum approximately 300 million (...)

The Brazilian Competition Authority suggests the conviction of car manufacturer and its car dealers for bid rigging in ambulance public tender (General Motors)
Inglez, Werneck, Ramos, Cury e Françolin Advogados
The Brazilian competition authority in charge for the investigation of antitrust violations – CADE’s General Superintendence (“SG”) – has suggested the conviction of General Motors (“GM”), and two of its car dealers HDM Ditribuidora de Veículos Ltda. (“HDM”) and Itororó Brás Veículos e Peças Ltda. (...)

The Brazilian CADE issues a decision on resale price maintenance that may serve as guidelines for future analyses (SKF)
Brasilian Administrative Council for Economic Defense (CADE) (Brasilia)
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Vinicius Marques de Carvalho Advogados (VMCA) (Sao Paulo)
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Machado Meyer Sendacz & Opice
The Brazilian Competition Authority (CADE) has recently issued an important decision on Resale Price Maintenance (RPM) practices that may serve as guideline for future analyses of this conduct (CADE’s Administrative Proceeding nº 08012.001271/2001-44). The administrative judgment started in 2009 (...)

The Brazilian Antitrust Tribunal fines medical gas companies more than USD 1.3 billion for conspiracy (SDE/MJ/AGA)
Tauil & Chequer (in cooperation with Mayer Brown)
SDE/MJ ex officio v. AGA S.A et al., better known as the medical and industrial gases Cartel - price fixing and market division conspiracy in the medical and industrial gas market. The investigation began in December 2003, and CADE’s decision was reached in May 2008. Some customers who suffered (...)

Unilateral Practices

The Brazilian Administrative Council for Economic Defense renders two legal opinions in investigations related to sham litigation practices (Eli Lilly do Brasil)
Tauil & Chequer (in cooperation with Mayer Brown)
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Tauil & Chequer (in cooperation with Mayer Brown)
On August 20, 2014, the General Superintendence of the Administrative Council for Economic Defense (“CADE”) rendered two legal opinions in investigations related to sham litigation practices recommending to CADE’s Tribunal: (i) the conviction of the companies Eli Lilly do Brasil Ltda. and Eli (...)

The Brazilian Competition Authority grants preliminary injunction against a leading banking group’s exclusive dealing (Bank of Brazil/ Interstate Federation of the Public Workers)
Itaú BBA (Sao Paulo)
The Brazilian Competition Authority – Conselho Administrativo de Defesa Econômica(hereinafter CADE) – has granted a preliminary injunction on an administrative procedure initiated ex officioby CADE itself, following a complaint against Banco do Brasil presented by the Interstate Federation of the (...)

The Brazilian Council for Economic Defense (CADE) holds that the exercise of an industrial property right could turn out to be illegitimate and be an antitrust violation (Volkswagen do Brasil Indústria de Veículos Automotivos)
Tauil & Chequer (in cooperation with Mayer Brown)
The author gives thanks to Mr. Bruno Droghetti Magalhães Santos and to Ms. Christine Holland, who gave support in research that was very useful to build this article. I. Background to the dispute The case refers to a Preliminary Investigation introduced by the Secretariat of Economic Law of (...)

Mergers

The Brazilian Administrative Council for Economic Defense issues guidelines on gun jumping
Mattos Filho Veiga Filho Marrey Jr & Quiroga (New York)
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Mattos Filho, Veiga Filho, Marrey Jr. & Quiroga (Sao Paulo)
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Mattos Filho, Veiga Filho, Marrey Jr. & Quiroga (Sao Paulo)
On May 20, 2015, the Administrative Council for Economic Defense (“CADE”) issued guidelines on gun jumping (“Guidelines”). These Guidelines are not binding on parties involved in transactions that require antitrust approval in Brazil, but they serve as an important guidance for companies and (...)

The Brazilian Federal Supreme Court overrules the Brazilian Competition Authority’s appeal regarding the Central Bank’s exclusive jurisdiction for merger control in financial institutions (Brazilian Central Bank)
Inglez, Werneck, Ramos, Cury e Françolin Advogados
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Inglez, Werneck, Ramos, Cury e Françolin Advogados
The Brazilian Federal Supreme Court has overruled the Brazilian Competition Authority’s appeal regarding the verdict issued by the Brazilian Superior Court of Justice regarding the Brazilian Central Bank’s exclusive jurisdiction for merger control involving banks and financial institutions in (...)

The Brazilian CADE applies remedies on four licensing agreements (Monsanto cases)
Tauil & Chequer (in cooperation with Mayer Brown)
I. Summary of the cases Each of the four concentration acts (“Monsanto Cases”) refer to non-exclusive licensing agreements for the development, testing, production and commercialization of seeds using Intacta RR2 PROTM technology in Brazil, executed between Monsanto, as licensor, and Syngenta, (...)

The Brazilian CADE analyzes two international mergers with intense cooperation with EU DG-Competition indicating a new approach for international merger review in Brazil (Mach/Syniverse, Munksjö/Ahlstrom)
Brasilian Administrative Council for Economic Defense (CADE) (Brasilia)
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Vinicius Marques de Carvalho Advogados (VMCA) (Sao Paulo)
CADE has recently analyzed two international mergers with intense cooperation with DG-Competition. In fact, these two cases reflect the advances brought by new Competition Law. In the previous law, CADE would only analyze cases after their approval by other jurisdictions. With the institution (...)

The Brazilian CADE enforces the new competition act: merger review developments
Magalhães Nery e Dias (Sao Paulo)
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Magalhães Nery e Dias (Sao Paulo)
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Magalhães Nery e Dias (Sao Paulo)
Introduction It has been almost one year since, in May 29, 2012, a new Competition Act (Law 12.529/11) came into force in Brazil, radically altering the country’s antitrust framework. The purpose of the long-awaited new law was to allow the competition regulator (the Administrative Council of (...)

The Brazilian Parliament adopts new merger law, with increase in filing thresholds and new merger regulations
Milbank, Tweed, Hadley & McCloy (New York)
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Jones Day (Sao Paulo)
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Jones Day (New York)
On May 29, 2012, Brazil’s New Merger Law entered into force and the Administrative Council for Economic Defense ("CADE") issued Merger Regulations that further define what transactions must be reported and what filing procedures followed in Brazil’s new pre-merger control regime. On May 31, (...)

The Brazilian Competition Authority imposes conditions on merger to create the largest airline in Latin America (TAM and LAN Airlines/Latam Airlines Group)
Itaú BBA (Sao Paulo)
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Azevedo Sette Advogados (Belo Horizonte)
The Administrative Council of Economic Defence (Conselho Administrativo de Defesa Econômica– CADE), Brazil’s antitrust authority, by unanimous decision, has authorised the merger between airline companies TAM, from Brazil, and LAN, from Chile, which created the largest airline company in Latin (...)

The Brazilian Parliament approves new competition law subject to prior significant vetoes
Milbank, Tweed, Hadley & McCloy (New York)
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Jones Day (Sao Paulo)
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Jones Day (New York)
On December 1, 2011, Brazil’s new competition law was published in its final form, having been approved by President Dilma Rousseff. The new law goes into effect on May 29, 2012. Before approving the new law, President Rousseff vetoed several provisions that affect timing of review, settlement (...)

Brazil’s Congress approves a new competition law that significantly restructures the landscape of competition enforcement
Milbank, Tweed, Hadley & McCloy (New York)
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Jones Day (Sao Paulo)
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Jones Day (New York)
On October 5, 2011, Brazil’s Congress approved a new competition law that significantly restructures the landscape of competition enforcement in Brazil. Brazil’s Congress will now forward the bill to the desk of President Dilma Rousseff, who has 15 working days to approve or reject the bill. If (...)

The Brazilian Administrative Council for Economic Defence approves the first voluntary divestment transaction (Owens Corning / Chongqing Polycomp International)
Inglez, Werneck, Ramos, Cury e Françolin Advogados
Brazil’s first voluntary divestment was approved by the Administrative Council for Economic Defence (CADE), involving the sale by the U.S. fibreglass manufacturer Owens Corning of its Brazilian fibreglass reinforcement plant to Chongqing Polycomp International Corporation, a Chinese company. On (...)

The Brazilian Council for Economic Defense clears merger between two ammunition companies resulting in monopolization of the relevant market (CBC/Rossi)
Tauil & Chequer (in cooperation with Mayer Brown)
The author gives thanks to Ms. Natali de Vicente Santos, who gave support in research that was very useful to build this article. I. Summary of the case For the first time, CADE applied the “declining markets” argument to justify that the transaction between two ammunition companies was not (...)

The Brazilian CADE vetoes transaction in the industry of concrete services based on a conservative presumption of economic group by summing minority equity interest in companies with small cross-sharing (Tupi / Polimix)
Tauil & Chequer (in cooperation with Mayer Brown)
The author thanks Natali de Vicente Santos for researching and debating this case law with him, which contributed for this article. I. Summary of the case In this case, the discussion at CADE focused on the corporate relationship between rivals being able to raise anticompetitive effects even (...)

The Brazilian Competition Authority requires divestiture of US leading supplier of soft drinks’ acquisition of Brazil’s iced tea producer (Coca-Cola, Leão Junior)
Jones Day (Mexico)
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Jones Day (Mexico)
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Jones Day (Madrid)
Brazil’s competition authority - Conselho Administrativo de Defesa Econômica (the Administrative Council for Economic Defense or “CADE”) - has ordered a divestiture after a two-year review of Coca-Cola‘s acquisition of a Brazilian bottled tea company. The acquisition of Leão Junior already was (...)

The Brazilian Antitrust Authority annnounces a new interpretation of the Brazilian merger notification threshold reducing foreign merger filings (ADC Telecommunications / Krone International)
Hughes Hubbard & Reed (Washington)
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Stanford University
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WilmerHale
Brazilian merger notification requirements, traditionally a major hurdle for multinational mergers, have just become less burdensome. In an unexpected development last Wednesday, the Brazilian antitrust authority (“CADE”) announced a new interpretation of the Brazilian merger notification (...)

Procedures

The Chinese State Administration for Industry and Commerce and the Brazilian Conselho Administrativo de Defesa Econômica sign a memorandum of understanding
University of Melbourne
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China Competition Bulletin (Beijing)
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Institute of American Studies (Beijing)
On 13 September 2012, the SAIC and CADE signed a Memorandum of Understanding. The MOU promotes and strengthens the institutional partnership between the SAIC and CADE, especially through information exchange and capacity building activities. In particular, the SAIC and CADE agreed to (...)

The Brazilian President approves the new competition law introducing substantive reforms to the national antitrust enforcement
Mundie e Advogados (Brasilia)
IN LINE WITH THE INTERNATIONAL COMPETITION BEST PRACTICES? The New Competition Law in Brazil* Starting on May 29, 2012, the most substantive reform of Brazil’s antitrust enforcement since the current framework was established in 1994 will enter into force. But is Law No. 12,529/11 (“the New (...)

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