Brazil

• Pages: 1-33

CHAPTER 3

BRAZIL

Brazil-3

CONTENTS

A. OVERVIEW ............................................................................................................ 5

1. General Policies Underlying Competition Laws ......................................... 5

2. Overview of Applicable Statutes ................................................................. 5

3. Overview of Structure, Independence, and Jurisdiction of

Enforcement Agencies ................................................................................ 6

4. Competition Advocacy ................................................................................ 7

B. SUBSTANTIVE LAW .............................................................................................. 8

1. Horizontal Agreements and Practices ......................................................... 8

a. Generally............................................................................................. 8

b. Cartel Enforcement ............................................................................. 8

(1) Agreements Covered .................................................................. 8

(2) Enforcement Authorities ............................................................ 9

(3) Investigatory Procedures ............................................................ 9

(a) Dawn Raids ......................................................................... 9

(b) Compelled Production of Documents................................ 10

(4) Penalties ................................................................................... 10

(5) Leniency Program .................................................................... 10

(6) Settlements ............................................................................... 12

c. Treatment of Intragroup Conspiracy or Acts by

Related Companies ........................................................................... 13

d. Other Horizontal Practices ................................................................ 14

2. Mergers and Acquisitions .......................................................................... 14

a. Overview........................................................................................... 14

b. Transactions Covered ....................................................................... 15

c. Joint Ventures ................................................................................... 16

d. Collaborative Agreements ................................................................ 16

e. Exemptions ....................................................................................... 16

(1) Transactions Done by the Controlling Shareholder ................. 16

(2) Public Procurement .................................................................. 16

(3) Tender Offers and Acquisitions through the

Stock Exchange Markets .......................................................... 16

(4) Derogation ................................................................................ 17

f. Notification and Procedure ............................................................... 17

(1) Jurisdiction ............................................................................... 17

(2) Filing Procedures...................................................................... 17

(3) Filing Fees ................................................................................ 18

(4) Initial Information Requirements ............................................. 19

(5) Confidentiality .......................................................................... 19

(6) Sanctions for Failing to File or Consummation

Prior to Obtaining CADE’s Approval ...................................... 19

g. Substantive Test ................................................................................ 20

h. Treatment of Efficiencies .................................................................. 20

i. Remedies........................................................................................... 20

j. Third-Party Rights ............................................................................ 21

3. Anticompetitive Business Conduct ........................................................... 21

a. Overview: Standards of Evaluation .................................................. 21

b. Definition of Dominance .................................................................. 22