Antitrust in Brazil

Anticompetitive practices

The Brazilian Securities & Exchange Commission opens public hearing to discuss the possibility of multiple stock exchanges in the country following discussions by the Competition Authority about this possibility in a number of recent proceedings
Vinicius Marques de Carvalho Advogados (VMCA) (Sao Paulo)
CADE’s analysis influence CVM debate regarding competition in the securities market* CVM has opened a public hearing to discuss the possibility of multiple stock exchanges in Brazil after the antitrust authority’s debates. In light of the discussions held by Cade in a number of antitrust (...)

The Brazilian CADE recommends closing an administrative inquiry which investigates potential anticompetitive conducts in the transmission of sensitive information among competitors in the payment market
Vinicius Marques de Carvalho Advogados (VMCA) (Sao Paulo)
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Vinicius Marques de Carvalho Advogados (VMCA) (Sao Paulo)
On October 14, CADE’s General Superintendence (GS) recommended closing an administrative inquiry investigating potential anticompetitive conduct. Such conduct consisted of the transmission of sensitive information among competitors in the payments market. More specifically, the investigation (...)

The Brazilian Competition Authority confirms the five-year statute of limitations for uniform conduct in the gas stations sector (Gas stations cartel)
Vinicius Marques de Carvalho Advogados (VMCA) (Sao Paulo)
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Vinicius Marques de Carvalho Advogados (VMCA) (Sao Paulo)
Confirming the recent understanding adopted in the ruling of the Trains Cartel, CADE’s Tribunal unanimously acknowledged, at the judgment session on June 30, the five-year statute of limitations for the conduct of influence of uniform conduct. The new orientation was confirmed in an (...)

The Brazilian Administrative Council For Economic Defence’s Tribunal provides further guidance for the assessment of international cartels and indicates when they are considered as able to produce effects in Brazil (Elpida / Mitsubishi / Nanya / NEC / Toshiba)
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 Brazilian 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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Carrilho Donas Advocacia
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 Competition Authority fines air cargo carriers for price fixing, highlighting the importance of leniency program in the fight against cartels (Absa Aerolineas Brasileiras)
OECD - Competition Division (Paris)
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 (Sao Paulo)
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)
OECD - Competition Division (Paris)
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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)
Madrona Advogados (São Paulo)
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 Competition Authority decides to file charges against a multinational technology company due to one of its online shopping platform features (Google)
OECD - Competition Division (Paris)
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University of São Paulo
GOOGLE SHOPPING IN BRAZIL: HIGHLIGHTS OF CADE’S DECISION AND TAKEAWAYS FOR DIGITAL ECONOMY ISSUES On 26 June 2019, the Brazilian Competition Authority (CADE) decided to file the competition charges raised against Google on its “Google Shopping” feature. It was not an easy decision, which is shown (...)

The Brazilian Competition Authority enters into a settlement agreement with a major refining company for the sale of oil refineries (Petrobras)
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 (Rio de Janeiro)
During a hearing held on June 11, 2019, the Administrative Council for Economic Defense (CADE) entered into a Settlement Agreement with Petrobras for the sale of eight oil refineries and associated infrastructure. The agreement was approved by the majority of CADE’s Commissioners and has in (...)

The Brazilian Administrative Council for Economic Defense issues two legal opinions in investigations related to sham litigation practices (Eli Lilly do Brasil)
Madrona Advogados (São Paulo)
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Tauil & Chequer in cooperation with Mayer Brown (Sao Paulo)
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 who engaged into exclusive dealing (Bank of Brazil / Interstate Federation of the Public Workers)
Lefosse Advogados (São 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)
Madrona Advogados (São Paulo)
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 Competition Authority’s Tribunal discusses the possibility of increasing the legal limits for fines in gun jumping cases (IBM / Red Hat)
Vinicius Marques de Carvalho Advogados (VMCA) (Sao Paulo)
IBM Red Hat case triggers discussion on gun jumping fine* CADE’s Tribunal debates changing the limits for fines, which would be currently outdated for high-value transactions. In the context of an Administrative Proceeding to Investigate a Merger (APAC, in its Portuguese acronym), CADE’s (...)

The Brazilian Competition Authority requests the submission of a below-threshold transaction between two distributors of pharmaceutical supplies (All Chemistry / SM Empreendimentos)
Caminati Bueno Advogados (São Paulo)
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Caminati Bueno Advogados (São Paulo)
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Caminati Bueno Advogados (São Paulo)
1. INTRODUCTION During the trial session of September 5, 2018, the Tribunal of the Brazilian Competition Authority (“CADE”) requested the submission of a transaction that did not trigger the mandatory notification thresholds.- In short, the transaction concerns the acquisition of All Chemistry (...)

The Brazilian Competition Authority 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 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 (Sao Paulo)
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Inglez, Werneck, Ramos, Cury e Françolin Advogados (Sao Paulo)
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 Competition Authority analyses two international mergers with intense cooperation with EU DG-Competition indicating a new approach for international merger review in Brazil (Mach / Syniverse / Munksjö / Ahlstrom)
OECD - Competition Division (Paris)
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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 Parliament adopts merger law, with an increase in filing thresholds and 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 Parliament enforces a competition act on the 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 Competition Authority imposes conditions on merger to create the largest airline in Latin America (TAM and LAN Airlines/Latam Airlines Group)
Lefosse Advogados (São 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 (Sao Paulo)
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)
Madrona Advogados (São Paulo)
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 Senate passes the text of the New Competition Act introducing a more efficient merger control system
European University Institute (Florence)
The Brazilian Senate Approves the Text of the New Competition Act* On the 2nd of December 2010 the Brazilian Senate approved the text of a new competition act. The draft legislation has been pending in the Brazilian Parliament since 2005, when it was proposed by the Government. After a long (...)

The Brazilian Competition Authority vetoes a transaction in the industry of concrete services based on the conservative presumption of an economic group by summing minority equity interest in companies with a small cross-sharing (Tupi / Polimix)
Madrona Advogados (São Paulo)
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 Brazilian Competition Authority considers using a new economics test with Moran’s I statistic to detect collusive behavior between competitors bidding in public procurement auctions
Vinicius Marques de Carvalho Advogados (VMCA) (Sao Paulo)
New cartel screening tool may enhance investigations by CADE* A new working paper published by the authority explores the possibility of applying statistics to public procurement auctions. CADE’s Department of Economic Studies (DEE) released, in December, a working paper discussing the (...)

The Chinese and Brazilian Competition Authorities 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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