Antitrust
The Administrative Council for Economic Defense (CADE) recently
published the Resolution No. 24, with changes to the administrative
proceeding to investigate potential gun jumping cases, especially
regarding the criteria for fine calculation.
Gun jumping occurs when the parties take actions to implement
transactions before CADE's approval. Once the wrongdoing is
detected, the companies involved are subject to a fine from BRL
60,000.00 (sixty thousand reais) to BRL 60,000,000.00
(sixty million reais). CADE may also declare the
transaction null and void, and launch an administrative proceeding
to investigate potential anticompetitive conduct.
The new methodology establishes a minimum fine of BRL 60,000.00
(sixty thousand reais), which shall be increased
according to the transaction value, the turnover of the economic
groups involved, the intention of the parties, the antitrust
impacts of the deal and the period between the closing and
CADE's decision.
