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Latest Updates on CADE's Policies

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9/9/2016 11:14 AM Demarest News

Latest Updates on CADE's Policies

The General Superintendence sends to CADE's Tribunal a new proposal for the Resolution that deals with Cooperation Agreements

CADE's General Superintendence has worked on revised rules for the notification of cooperation agreements.

According to the new proposed rules, only cooperation agreements between competitors shall be subject to antitrust scrutiny. The new draft keeps the threshold of a combined share of 20% in horizontal contracts - i.e. parties must overlap and their combined share must reach or exceed 20% of the affected market - and establishes that there must be sharing of risks between the contracting parties.

The major shift of the new proposal is the removal of vertical relations as a filing criterion, meaning that supply and distribution agreements that are currently reportable may fall outside of the scope of the merger regulation. If this change is confirmed, the number of deals notified under the concept of "cooperation agreements" is expected to drop considerably.

The proposal is currently under discussion at CADE's Tribunal.

CADE publishes Resolution formalizing a 30-day term for the assessment of Fast Track cases

CADE passed Resolution No. 16/2016, which formally provides for a 30-day deadline to be observed by the General Superintendence in the assessment of merger filings analyzed under the fast track review. The fast track is applicable to simple cases, which generally refer to transactions that do not result in concentrations of any nature or that involve low market shares.

The 30-day deadline has been implemented in practice over the past years, under an informal commitment made by the General Superintendence. The formalization of the 30-day period is welcomed  and will bring more legal certainty for the review process of fast-track notifications.

CADE works in association with the PPI Executive Office for the prevention of cartels in public procurement

Pursuant to recent news published in the press, CADE produced a document called "Measures to encourage a competitive environment in bidding processes: CADE contributions", which consists of recommendations to the Executive Office of the so-called PPI (Investment Partnership Program). This is possibly the first initiative of the competition authorities in Brazil to proactively participate in rulings involving public procurement.

CADE's recommendations include the adoption of preventive measures such as monitoring to avoid that competitors meet and share commercially sensitive information during the bidding process.

CADE is now expected to be a permanent contributor of the PPI in the duty of cartel prevention.

Demarest Advogados


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