CADE dismisses case on Amazon-Anthropic investments and agreements

The proceeding was launched to assess whether the acquisition of equity interests and agreements concerning the provision of computing infrastructure, technological development, and distribution of artificial intelligence (AI) models required prior notification to CADE.  

Commissioner José Levi, rapporteur of the case, concluded that Amazon's acquisition of a minority stake in 2023 constituted a merger, but it was not subject to mandatory pre-merger notification, since Anthropic’s turnover in Brazil did not meet the minimum threshold established by Law 12529/2011, in the year prior to the transaction.  

As for the collaboration agreements, the rapporteur found that the instruments did not constitute a partnership agreement under CADE Resolution 17/2016. Although the documents set relevant economic links between the companies, no joint undertaking or risk-sharing, and results arising from the economic activity underlying the collaboration were identified at this stage.  

The Tribunal concluded that there was no gun-jumping and ordered the proceeding to be dismissed.  

Future perspectives 

Rapporteur José Levi stressed that the decision is limited to the equity interests, agreements, and contractual provisions actually examined in the proceedings, and that the case dismissal does not mean that every minority investment or collaboration agreement between computing infrastructure providers and AI developers falls outside merger control.  

CADE found that partnerships of this nature may generate efficiencies. However, depending on their structure, they may also raise concerns such as technological or commercial dependence, switching costs, access to competitively sensitive information, and potential restrictions on competitors’ ability to operate.  

Commissioner Levi determined that any future changes in the relationship of the companies may justify CADE’s new assessment. He further stressed that, even if there is no merger in a particular collaboration, the execution of the agreements could still be investigated with respect to potential anticompetitive effects.  

“Law 12529/2011 provides structural and behavioural remedies which, subject to their respective legal requirements, allow the authority to examine transactions that were not captured by ordinary notification criteria and investigate practices that could have anticompetitive effects,” he emphasised.  

Therefore, the Tribunal concluded that closing the case does not grant the collaboration between Amazon and Anthropic immunity from competition scrutiny, nor does it prevent CADE’s future operations through merger control, or investigation of potential anticompetitive conducts.  

Access Case No. 08700.007165/2024-11