CADE strengthens anticompetitive conducts repression in 2013
The Brazilian Administrative Council for Economic Defense – CADE rendered 22 condemnations to administrative proceedings regarding anticompetitive conducts in 2013, applying a total amount of BRL 491.6 million in fines. The number of condemnations by infractions to the economic order is the highest registered in the last five years.
There were two condemnations in 2012 and only one in 2011. CADE applied administrative sanctions in four proceedings in 2010, and in two in 2009.
This increase is due to the fact that CADE’s Tribunal has been able to focus on proceedings judgments regarding anticompetitive conducts – such as cartels and price fixing. Only in 2013, CADE evaluated 38 cases on the subject. Since 2009, this number did not surpass 18.
After the change in the Brazilian competition legislation in 2012, CADE has undergone a institutional and management reform that made merger analysis more quickly – the average period for the decisions is 24 days. Thus, the antitrust agency gained efficiency and intensified the combat to anticompetitive conducts, especially cartels. Of the 22 condemnations in 2013, 13 were collusion cases.
In addition to the concluded judgments, in 2013, CADE’s General Superintendence opened 14 new administrative proceedings to investigate infractions to the economic order and carried out two dawn raids. The Superintendence also concluded the instruction of 49 conduct cases, submitting them to the Tribunal for evaluation, and, afterwards, for the final decision.
Merger control – Along 2013, CADE judged 447 mergers. Among them, 87% were approved without restrictions, 10% were authorized with some sort of restriction, and 1% was blocked. The blocked transactions, a total of three, were submitted under the regime of the previous antitrust law (Law 8.884/94).
In the past year, 377 mergers were filed.
Recognition – Along 2013, CADE received important recognitions, such as four stars in the evaluation of the Global Competition Review – GCR, specialized in competition policy and regulation. Annually, the publication analyzes the performance of agencies throughout the world, bestowing on them rates between one and five stars.
With four stars, the Brazilian autarchy jumped from the thirteenth to the eighth position in the best antitrust authorities in the world rank, and only stayed behind the European Union, France, Germany, United Kingdom, United States of America (Department of Justice’s antitrust division and Federal Trade Commission), Japan and Australia.
One more recognition to the competition authority, nationally, occurred with the 18th Innovation in Federal Public Management Contest, promoted by the National Public Administration School – ENAP. CADE’s previous analysis regime in mergers was selected among the ten winning governmental actions of the contest. The announcement of each action’s position will happen in the awarding ceremony, in March 2014.