Brazil's CADE Prepared to Regulate Digital Economy

Brazil's CADE Prepared to Regulate Digital Economy
Photo: freepik.com 05.02.2024 280

In Brazil, discussions continue about which agency will be in charge of regulating digital markets. The president of CADE believes that this is the task of the antitrust authority.

Brazil’s competition authority CADE is prepared to be the entity in charge of regulating the digital economy, Valor Econômico reported, citing agency President Alexandre Cordeiro.

CADE would have the ability to be the designated digital economy regulator because digital economy issues are closely related to companies’ dominant position, and are often related to market foreclosure, the creation of hindrances to competitors, the size of companies, vertical integrations, and killer acquisitions, Cordeiro was cited in the Portuguese-language item as saying.

The decision of which authority will be the designated regulator is a political one to be made by the government, the item said, citing Cordeiro.

CADE has implemented a case-by-case regulation through pre-trial measures, Cordeiro was also cited as saying. As reported, CADE settled abuse of dominance investigations into online food delivery platform iFood and gym aggregator platform GymPass through cease-and-desist agreements (TCCs).

Last April, CADE General Superintendent Alexandre Barreto de Souza spoke at the HSE University about the iFood case and problematic aspects of digital intermediary platforms. He was invited by the BRICS Competition Centre to deliver an honorary report entitled "Digital Economy and Competition Protection: International Approaches and Brazilian Experience."

Regarding CADE’s TCC with Petrobras, Cordeiro said it is not the first time that the agency has received a request to revise a TCC, according to the report. It is possible to review TCCs so long as competition conditions are upheld, he added. Petrobras asked CADE in November 2023 to review both the oil refining and natural gas TCCs, as reported.

The state-run energy company’s requests are being analyzed by the SG and will be submitted to the tribunal, which wants to adjudicate the matter soon, the item said, citing Cordeiro.

Cordeiro declined to comment on his request to investigate polling firms during the 2022 election, as the case is being litigated in the courts, the newspaper reported. CADE has an excellent, institutional relationship with the government, Cordeiro noted.

The Supreme Court has revoked leniency agreements signed as  the Lava Jato corruption probe, Valor reported. The impact of such cancellations on CADE’s TCCs and the evidentiary content of CADE’s investigations remains unclear, Cordeiro added.

Sources: ValorPaRR

digital markets  Brazil 

Share with friends

Related content