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Cade discloses an informative note on the collaboration among competitors to face the Covid-19 crisis

Informative Note

The document provides guidance on procedures available for economic agents to get a declaration from Cade
published: Jul 07, 2020 10:01 AM last modified: Jul 14, 2020 03:43 PM
by International Unit

The Administrative Council for Economic Defense (Cade) released, this Monday (6 July), a provisional informative note concerning the collaboration among companies to face the Covid-19 crisis. The document provides guidance on recommended parameters in the elaboration of strategies to fight the pandemic and on procedures available for economic agents to get a declaration from Cade.

Collaboration agreements among competitors are agreements that establish forms of action among companies in the same market, on an emergency, urgent and provisional basis, aiming at overcoming adversities resulting from a large and non-sectoral crisis situation, in addition to mitigating its main immediate effects to preserve competition in the affected sectors.

In the context of the protracted crisis due to the Covid-19 pandemic, antitrust authorities worldwide are making efforts to provide swift analysis procedures and guidelines for market players. With the disclosure of the note, Cade seeks to promote a greater transparency and legal certainty, providing guidelines on the collaboration among competitors and establishing swift and efficient analysis mechanisms to support these players’ strategies on fighting the pandemic.

The general guidelines for collaboration among companies involve considerations regarding scope, duration, territorial extension, governance, transparency and good faith. In addition, the informative note also establishes procedures that may be adopted by economic agents in order to get a declaration from the agency – communication channel, petition or inquiry -, with broad details regarding each one.

“It is noteworthy that agreements among competitors for price fixing, market division and supply restriction will continue to be strongly repressed by the antitrust authority, as well as the exchange of sensitive competitive information among companies, in accordance with the competition law and the consolidated precedent of this Council. Strategies involving collaboration among companies must observe all precautious measures so that such types of anticompetitive practices do not occur, at the risk of being investigated and punished for the crimes committed,” states the informative note.   

The provisional informative note is a result from the Working Group established for the elaboration of the document, which was coordinated by the commissioner Paula Azevedo. The document is for educational purposes only and has no ruling nor binding nature.

Access the document in English here.

Access the document in Portuguese here.