Brazilian Antitrust Authority (CADE) Issues New Merger Control Rules For Notification Of Associative Agreements

Brazil's Administrative Council of Economic Defense – CADE approved on October 29, 2014 Resolution No. 10 ("CADE Resolution No. 10") defining the criteria for notification of associative agreements.

Article 90, IV of Law No. 12.529/11 (the "Brazilian Antitrust Law") sets forth that "associative agreements" are subject to the pre-merger control system if the parties meet the turnover thresholds.

CADE case law held that a broad range of transactions can be considered as so called "associative agreements", such as supply and distribution agreements, IP licensing agreements, joint undertakings, among others. Such agreements have in common that they are "cooperative" in nature or have restrictive covenants (e.g. exclusivity and non-compete provisions).