Competition Law at Brazil
Competition Law in Brazil is governed primarily by the Brazilian Competition Law (Law No. 12,529/2011), which is enforced by the Administrative Council for Economic Defense (CADE). This law regulates antitrust issues, including anti-competitive practices, merger control, and abuse of dominant position.
Here’s an overview of the main aspects:
1. Regulatory Authority: CADE
CADE is an autonomous federal agency responsible for:
Investigating and sanctioning anti-competitive conduct.
Reviewing and approving mergers and acquisitions.
Promoting competition in the Brazilian market.
CADE is composed of:
Administrative Tribunal (Tribunal Administrativo)
Superintendence-General (Superintendência-Geral)
Department of Economic Studies
2. Key Provisions of Law No. 12,529/2011
A. Anti-competitive Practices
Prohibited conduct includes:
Cartels (e.g., price fixing, market division).
Predatory pricing.
Exclusive dealing and tying arrangements.
Abuse of dominant position.
CADE may impose fines ranging from 0.1% to 20% of a company’s gross revenue for such infractions.
B. Merger Control
Threshold: Mandatory filing if one party had revenue in Brazil exceeding BRL 750 million and the other BRL 75 million in the previous fiscal year.
Suspensory regime: The transaction cannot be closed until CADE approves it.
Review period: Typically up to 240 days, but often shorter.
C. Leniency Program
Companies or individuals involved in cartels may apply for leniency in exchange for cooperation.
Offers reduced or no penalties for the first applicant who confesses and provides evidence.
3. Recent Trends and Enforcement
Strong focus on cartels and bid-rigging, particularly in public procurement.
Increasing scrutiny on digital markets and tech platforms.
CADE actively cooperates with international competition authorities.
4. Penalties
Administrative: Fines, business restrictions, and invalidation of contracts.
Criminal: Individuals involved in cartels may face 2–5 years imprisonment and fines under the Brazilian Penal Code.
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