Edited by The enforcement of competition L Cristianne Zarzur Krisztian Katona ZI OVERVIEW law in Brazil has changed markedly Mariana Villela A in recent years, impressing all Contributors R observers. Recent domestic OF COMPETITION Ana Paula Martinez B reforms transformed the country’s Aurélio Santos N competition enforcement system Barbara Rosenberg LAW IN BRAZIL I Bruno de Luca Drago and mechanisms, further increasing W Caio Mario da Silva Pereira Neto Brazil’s importance on the global A Carlos Francisco de Magalhães L stage of antitrust and paving Cristiano Rodrigo Del Debbio Daniel Andreoli N the way for additional progress. Eduardo Caminati Anders O Areas for improvement remain, Eduardo Frade Rodrigues I however, and the rapid changes Erika Vieira Sang T Fabíola Cammarota de Abreu TI leave even the most seasoned Fabricio A. Cardim de Almeida E international practitioner a step or Filippo Maria Lancieri P two behind the curve. Accordingly, Francisco Niclós Negrão M this compendium offers invaluable Gabriel Nogueira Dias O Guilherme Morgulis guidance from Brazil’s leading C João Marcelo Lima competition experts and regulators Joyce Midori Honda F Leonardo Maniglia Duarte O on how to navigate the new Luís Henrique Perroni Fernandes regulatory regime. In its breadth W Marcela Abras Lorenzetti and depth, the Overview Marcelo Calliari E Marcio Bueno VI of Competition Law in Brazil Marcio Dias Soares is groundbreaking and will prove R Marcos Exposto E a keystone resource in the field. Marcos Paulo Veríssimo V Maria Eugenia Novis O Mariana Tavares de Araujo Mauro Grinberg Paulo Eduardo Lilla Desde 1992 Paulo Leonardo Casagrande Instituto Brasileiro de Estudos de Concorrência, Consumo e Comércio Internacional EDITORA SINGULAR PPRRRRSVeareeoiicnidnnndsaicrdaêcrroiiidt rglGu aaaoPos u TFB a BMAieolurhorolnlaveoetlsreiepr qoeSsmlihuc n aGdaeoeslolo s eZSsn sdu. çS CecMaac rClneivosatedltoorsorvsafadalrhooo Desde1992 Instituto Brasileiro de Estudos de Concorrência, Consumo e Comércio Internacional InstituCtoo nBsruamsiloe ireo C doDeme sEdéesr t c1u9i9od2 oIsn tdeern Caocniocnoarlrência, capaower3a.indd 1 08/06/15 17:30 Edited by Cristianne Zarzur, Krisztian Katona and Mariana Villela Contributors Ana Paula Martinez Luís Henrique Perroni Fernandes Aurélio Santos Marcela Abras Lorenzetti Barbara Rosenberg Marcelo Calliari Bruno de Luca Drago Marcio Bueno Caio Mario da Silva Pereira Neto Marcio Dias Soares Carlos Francisco de Magalhães Marcos Exposto Cristiano Rodrigo Del Debbio Marcos Paulo Verissimo Daniel Andreoli Maria Eugênia Novis Eduardo Caminati Anders Mariana Tavares de Araujo Eduardo Frade Rodrigues Mauro Grinberg Erika Vieira Sang Paulo Eduardo Lilla Fabíola Cammarota de Abreu Paulo Leonardo Casagrande Fabricio Antonio Cardim de Almeida Pedro Paulo Salles Cristofaro Filippo Maria Lancieri Priscila Brolio Gonçalves Francisco Niclós Negrão Renata Fonseca Zuccolo Gabriel Nogueira Dias Renê Guilherme S. Medrado Guilherme Morgulis Ricardo Botelho João Marcelo Lima Rodrigo Alves dos Santos Joyce Midori Honda Sandra Terepins Leonardo Maniglia Duarte Vinicius Marques de Carvalho 2015 Dados Internacionais de Catalogação na Publicação (CIP) O967 Overview of competition law in Brazil. / São Paulo : IBRAC/Editora Singular, 2015. 448 p. ISBN: 978-85-86626-74-6 Edited by: Cristianne Zarzur, Krisztian Katona and Mariana Villela. Contributors: Ana Paula Martinez, Aurélio Santos, Barbara Rosenberg, Bruno de Luca Drago, Caio Mario da Silva Pereira Neto, Carlos Francisco de Magalhães, Cristiano Rodrigo Del Debbio, Daniel Andreoli, Eduardo Caminati Anders, Eduardo Frade Rodrigues, Erika Vieira Sang, Fabíola Cammarota de Abreu, Fabricio Antonio Cardim de Almeida, Filippo Maria Lancieri, Francisco Niclós Negrão, Gabriel Nogueira Dias, Guilherme Morgulis, João Marcelo Lima, Joyce Midori Honda, Leonardo Maniglia Duarte, Luís Henrique Perroni Fernandes, Marcela Abras Lorenzetti, Marcelo Calliari, Marcio Bueno, Marcio Dias Soares, Marcos Exposto, Marcos Paulo Verissimo, Maria Eugênia Novis, Mariana Tavares de Araujo, Mauro Grinberg, Paulo Eduardo Lilla, Paulo Leonardo Casagrande, Pedro Paulo Salles Cristofaro, Priscila Brolio Gonçalves, Renata Fonseca Zuccolo, Renê Guilherme S. Medrado, Ricardo Botelho, Rodrigo Alves dos Santos, Sandra Terepins, Vinicius Marques de Carvalho. 1. Direito da concorrência,  Brasil. 2. Concorrência,  Brasil. 3. Direito econômico. 4. Direito econômico internacional. I. Instituto Brasileiro de Estudos de Concorrência, Consumo e Comércio Internacional – IBRAC (Ed.). II. Editora Singular (Ed.). CDD: 341.3787 CDU: 339.137:34(81) CDU: 929 Revisora: Christina Rostworowski da Costa Diagramação: Microart Design Editorial Capa: Aeroestudio © desta edição [2015] IBRAC Rua Cardoso de Almeida, 788, cj 121 05013-001 – São Paulo-SP Tel. (11) 3872-2609 www.ibrac.org.br [email protected] Editora Singular www.editorasingular.com.br [email protected] TABLE OF CONTENTS About IBRAC ..................................................................................................... 7 Foreword ............................................................................................................. 9 About the Editors ............................................................................................... 11 About the Authors .............................................................................................. 13 Questions & Answers Vinicius Marques de Carvalho .................................................................. 25 Questions & Answers Eduardo Frade Rodrigues ......................................................................... 41 Introduction Fabricio Antonio Cardim de Almeida ..................................................... 53 Chapter I – Controversial Issues in Merger Review: Practical Aspects Maria Eugênia Novis and Marcos Paulo Verissimo ............................... 59 Chapter II – Overview of Recent Merger Control Rules: Main Aspects of CADE Resolution 2 Eduardo Caminati Anders ......................................................................... 77 Chapter III – The Antitrust Review of Minority Shareholdings between Competitors – the Brazilian Perspective Caio Mario da Silva Pereira Neto, Paulo Leonardo Casagrande and Filippo Maria Lancieri ............................................................................... 101 Chapter IV – Investment Funds: Salient Issues in Merger Filings in Brazil Renê Guilherme S. Medrado and Luís Henrique Perroni Fernandes ... 119 Chapter V – Associative Agreements under the Brazilian Antitrust Law Fabíola Cammarota de Abreu and Joyce Midori Honda ........................ 135 5 6 OVERVIEW OF COMPETITION LAW IN BRAZIL Chapter VI – Technology Transfer Agreements as “Associative Agree- ments” Subject to Merger Control in Brazil Paulo Eduardo Lilla and Erika Vieira Sang ............................................. 171 Chapter VII – Remedies in Merger Cases: Brazil’s Recent Experience Marcio Dias Soares, Renata Fonseca Zuccolo and João Marcelo Lima 213 Chapter VIII – Gun Jumping: CADE’s Experience under the New Antitrust Law Barbara Rosenberg, Guilherme Morgulis, Marcos Exposto and Sandra Terepins ....................................................................................................... 231 Chapter IX – Anti-cartel Enforcement in Brazil: Status Quo & Trends Ana Paula Martinez and Mariana Tavares de Araujo ............................. 257 Chapter X – Cartel Punishment in Brazil: Facts and Trends Mauro Grinberg and Marcela Abras Lorenzetti ...................................... 275 Chapter XI – Cartel Settlements in Brazil Recent Developments and Upcoming Challenges Leonardo Maniglia Duarte and Rodrigo Alves dos Santos .................... 285 Chapter XII – Leniency Agreements in Brazil Marcelo Calliari, Daniel Andreoli and Marcio Bueno ........................... 315 Chapter XIII – Unilateral Conduct Law and Practice in Brazil Ricardo Botelho and Aurélio Santos ....................................................... 325 Chapter XIV – Vertical Price Restraints: Recent Developments in Brazi- lian Antitrust Policy Regarding Resale Price Maintenan- ce (RPM) and Suggested Resale Prices Priscila Brolio Gonçalves ........................................................................... 357 Chapter XV – Judicial Review of CADE’s Decisions Pedro Paulo Salles Cristofaro .................................................................... 371 Chapter XVI – Private Antitrust Damages Carlos Francisco de Magalhães, Gabriel Nogueira Dias, Cristiano Rodrigo Del Debbio and Francisco Niclós Negrão................................. 395 Chapter XVII – Standard Essential Patents, FRAND Commitments and Antitrust Law From a Brazilian Perspective Bruno de Luca Drago ................................................................................. 415 ABOUT IBRAC The Brazilian Institute of Studies on Competition, Consumer Affairs and International Trade – IBRAC is a nonprofit private entity established in 1992 to foster the development of research, studies and debates involving competition, consumer law issues and international trade. In order to achieve that end, IBRAC has played an active role in the interaction with the Brazilian antitrust authorities (Conselho Administrativo de Defesa Econômica – CADE) and a number of other governmental and non-governmental institutions, all of which have translated into constant meetings and workshops to discuss specific topics of relevant subjects. In addition, IBRAC also promotes events, notably the International Seminar on Competition Defense, which is held every year with the attendance of illustrious panelists from Brazil, and from many other jurisdictions that interact with the Brazilian antitrust system, notably the United States of America, the European Community, countries in Latin America and Asia. IBRAC is basically a forum for discussion. Within this context it also maintains a permanent university extension course on antitrust law in São Paulo, whose classes are given by leading professionals and authorities in the Brazilian competition segment, and we promote our own publication, Revista do IBRAC, which is one of the leading publications in the area in Brazil. This year, we have decided to innovate, putting together a book containing articles on topics on antitrust law that affect both Brazilian and foreign companies doing business in Brazil, written by associates of IBRAC, all of which have been working with antitrust law in Brazil for many years. The idea was to organize a publication in English which would be accessible to the international antitrust community and foster knowledge and discussion on the development of antitrust in Brazil. 7 8 OVERVIEW OF COMPETITION LAW IN BRAZIL For this project, we have been honored to work together with Krisztian Katona, Counsel for International Antitrust in the Federal Trade Commission’s Office of International Affairs, who co-edits the publication and who has helped conceive, coordinate and execute the project. We have also been honored to receive contributions from Mr. Vinicius Marques de Carvalho, President of CADE’s Tribunal, and to Mr. Eduardo Frade Rodrigues, General Superintendent of CADE, who have agreed to participate in a specific Q&A section. We are grateful for the time and energy they have dedicated to this publication. We are extremely proud of this high-quality work, prepared with enthusiasm, which we feel and expect will be helpful to bring more light to the discussions being held in the competition field in Brazil. We hope that you enjoy this journey. For further information on IBRAC, please visit our website at www.ibrac.org.br, or write to ibrac@ ibrac.org.br. April 2015 Cristianne Zarzur – President Mariana Villela – Director of Publications FOREWORD Brazil’s rapid development in the global competition arena in recent years has impressed all observers. In a remarkably short period of time, the Brazilian competition regime has expanded in both breadth and depth, while also witnessing reforms that changed the nature and functioning of the entire system. The result is a considerably more mature legal and regulatory structure, one that now rivals the most advanced antitrust and competition regimes in the world. Working with a number of emerging competition regimes, I have watched with respect Brazil’s progress accelerate. As part of its transition to a market-based economy in the 1990s, Brazil was one of the first Latin American countries to create an active competition enforcement system. However, since 1994, Brazil’s antitrust regime consisted of three agencies with overlapping enforcement responsibilities, resulting in lengthy reviews and significant backlogs in merger and conduct investigations. These and other important areas were promptly recognized as needing improvement by practitioners, scholars, and international organizations, even as the system made steady and remarkable progress over the years. The structure changed dramatically with the adoption of the 2011 competition law. Following an institutional reform that unified all antitrust enforcement functions in a single agency, today’s Brazilian regime boasts a modern competition authority (Conselho Administrativo de Defesa Econômica – CADE) with streamlined decision-making processes, a significantly reduced backlog in investigations, and a number of notable organizational improvements. The new law also addressed another bottleneck of the previous regime by creating a pre-merger notification system with fixed deadlines in place of post-merger notification. Having removed the largest problems of the old regime, the 2011 reform set the legal and institutional foundation for further progress. Indeed, CADE recently released a number of regulations addressing substantive and procedural 9