The History of Merger Control in Brazil
A Comprehensive Guide
Introduction
Merger control is an important aspect of competition law, as it allows antitrust authorities to review proposed mergers and acquisitions to ensure that they do not harm competition. In Brazil, merger control has been in place since 1994, and has undergone several changes over the years. This article provides a comprehensive overview of the history of merger control in Brazil, including the key features of the current regime.
Early History of Merger Control in Brazil
The first Brazilian law specifically dealing with competition issues was Law 4137 of 10 September 1962. This law established the Conselho Administrativo de Defesa Econômica (CADE), which is the Brazilian antitrust authority. CADE was given the power to review mergers and acquisitions, but only if they involved companies with a certain market share.
In 1994, Brazil passed a new competition law, Law 8884. This law significantly strengthened CADE's powers, and gave it the authority to review all mergers and acquisitions, regardless of the market share of the companies involved. The law also established a new merger review process, which is still in place today.
The Current Merger Control Regime in Brazil
The current merger control regime in Brazil is based on Law 8884. The law establishes a two-stage merger review process. In the first stage, CADE reviews the proposed merger to determine whether it is likely to harm competition. If CADE finds that the merger is likely to harm competition, it can block the merger or impose conditions on the merging parties.
In the second stage, CADE reviews the proposed merger in more detail. This review is typically conducted by a special commission, which is appointed by CADE. The commission reviews the merger to determine whether it is likely to harm competition. It also considers the competitive effects of the merger in the relevant market. If the commission finds that the merger is likely to harm competition, it can recommend that CADE block the merger or impose conditions on the merging parties.
Conclusion
Merger control has been an important part of competition law in Brazil for over 25 years. The current merger control regime is based on Law 8884, which was passed in 1994. The law establishes a two-stage merger review process, which is designed to ensure that mergers do not harm competition. CADE has been active in enforcing the merger control law, and has blocked several mergers that it believed would harm competition.
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