Study Evaluates Monitoring Actions by CADE in Merger Agreements

Study Evaluates Monitoring Actions by CADE in Merger Agreements
Photo: 05.06.2023 135

The document reviews the development of supervisory activities carried out by the antitrust authority, focusing on transactions approved subject to agreements between 2016 and 2021. 

On 22 May, the Administrative Council for Economic Defense (CADE) published the working document titled "Monitoramento de Remédios Antitruste: uma análise da jurisprudência do Cade" produced by the Department of Economic Studies (DEE) of CADE.

Antitrust remedies are restrictions established by the authority to correct potential harmful effects which could result from a merger. The Tribunal of CADE may require the companies involved to comply with several obligations set in a Merger Control Agreement (ACC) to approve a particular transaction.

The document, written by the civil servant Maria Cristina Attayde, aims to evaluate the development of monitoring activities carried out by CADE, specifically related to the measures provided via merger control agreements. The review considered the transactions approved under an agreement signed between 2016 and 2021.

The document highlights that "one of the great challenges for antitrust authorities is to achieve a significant level of effectiveness in their decisions, commitments or agreements. In particular, regarding antitrust remedies, monitoring is one of the relevant aspects that can determine the effectiveness of these applications.”

The publication has five sections and presents research on precedent decisions, including data about the proceedings and merits of decisions, plus information related to the monitoring of agreements signed in transactions approved by CADE in the specified years.

According to the Department, the study indicates that the quality of monitoring activities of antitrust remedies carried out by CADE has enhanced over the period under review, following the guidelines and recommendations from the Guide to Antitrust Remedies. The document edited by CADE gathers the best practices and procedures adopted in the design, imposition and monitoring of measures provided in the merger control agreement.

Lastly, the publication lists all the cases analysed and information such as a description of the transaction, competitive harm, antitrust remedies, and a summary of the monitoring documents issued during the period covered.

Access the working document (Portuguese only)



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