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Antitrust
All individuals and legal entities, including public ones, are subject to the Brazilian Antitrust Law.
1. Violations to the Economic Order
The Brazilian Antitrust Law prohibits any act that violates the economic order, regardless of intention, including acts that limit or hinder free competition and free enterprise, lead to the domination of a relevant market, arbitrarily increase profits
or characterize abuse of a dominant position.
The following are some of the acts of violation listed in the Brazilian Antitrust Law: price-fixing with
a competitor, allocating parts of the market with a competitor, cartel practices, limiting access of new players to the market, price discriminating, bid-rigging, refusing to sell goods or services, dumping practices.
Corporate fines for antitrust violations range from 0.1% to 20% of the gross revenue of the company or economic group in the sector
of activities in which the violation occurred, in the fiscal year prior to the opening of the administrative proceeding.
Fines to directors of the company range from 1% to 20% of the fine imposed to the company. Fines to other individuals range from R$ 50,000 to R$ 2,000,000,000.
Other penalties and remedies may
The Brazilian Antitrust Law prohibits any act that violates the economic order, regardless of intention
be applied by CADE to prevent or reduce harm to competition, such as compulsory license of patent rights, mandatory transfer of corporate control and termination of tax incentives or public subsidies.
2. Merger Control
Acts of concentration, such as merger and acquisitions, joint ventures and association agreements, that meet the thresholds set forth
by the Brazilian Antitrust Law, are subject to prior review by CADE. The closing of the transaction cannot be implemented until approvement by CADE.
Currently, thresholds are the following: (i) at least one of the economic groups involved in the transaction had gross revenues in Brazil in the preceding fiscal year exceeding R$ 750,000,000 and (ii) at least one of the other economic groups involved in the transaction had gross revenues in Brazil in the preceding fiscal year exceeding R$ 75,000,000. CADE has a maximum term of 330 days to reach a decision on the matter, but less complex transactions (the ones that raise no
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