Mario Sergio Rocha Gordilho Jr., Carlos Ragazzo, Aug 26, 2013
On November 30, 2011, after a lot of debate in Congress, Brazil’s President sanctioned the approval of a new Competition Law (Law 12.529/11). After the six-month vacatio legis that aimed to give the authorities time to prepare the new competition policy system, the law came into force on the May 29, 2012, bringing about substantial innovations to the national antitrust scenario, especially regarding mergers. Brazil had been one of the very few countries in the world that reviewed mergers only after they were consummated. After the Law was issued, however, merger control started to be reviewed ex ante, following the international trend.
With the new Law, the following challenge was set for Brazil’s antitrust authority: Structure the new infralegal framework and the new administrative structure of the agency in a way that would make the new system more efficient and able to benefit from these advantages. And accompanying this challenge during the transition period was, without doubt, a generalized feeling of uncertainty by the private sector, especially economists and lawyers who deal with antitrust issues in Brazil. For this reason, a swift and efficient response from the new CADE was necessary to calm the general agitation and, ultimately, neutralize the feeling of insecurity that reigned over the new Brazilian antitrust model, especially in merger review.
This article focuses its attention on the creation…