Brazil Proposes Guidelines For Settling Cartel Cases

The Brazilian competition authority, CADE (Administrative Council for Economic Defense), has published a proposed regulation for settling potential antitrust liability for cartel activity under Brazil's new competition law.  The proposed regulation provides a settlement procedure and incentives to settle, in the form of a percentage reduction in fines, for companies that have been involved in cartel activity but do not qualify for amnesty.  CADE has invited public comment on the proposed regulation until January 14, 2013, and it is reported will implement the final regulations by February 2013.

If the proposed regulation is implemented, as is expected, parties that cooperate with the competition authority will qualify for specific discounts from fines that otherwise could be imposed after an ongoing investigation.  The proposed regulation also sets forth the administrative procedures for instituting and negotiating settlements.