Notícias
DECISION
CADE fines Professional Federal Councils for abuse of regulatory power
On 14 May, the Administrative Council for Economic Defense (CADE) fined the Brazilian Federal Veterinary Council (CFMV), the Brazilian Federal Council of Dentistry (CFO), and the Brazilian Federal Council of Pharmacy (CFF) for abuse of regulatory power. The entities created regulations that restricted the professional registration of graduates from Distance Learning programmes. The fines applied surpass BRL 2.1 million.
According to Commissioners Gustavo Augusto, Victor Fernandes, and Camila Pires, the Federal Councils exceeded their legal authority when interfering in the validity of the degree recognised by the Brazilian Ministry of Education (MEC) or deny the professional registration of graduates from Distance Learning programmes, which is considered abuse of regulatory power with competitive impacts.
Brazilian Federal Council of Pharmacy (CFF)
The anticompetitive conduct of the CFF relates to the issuance of an official communication by the entity that restricted competition in the markets where professionals graduating from Distance Learning pharmacy programmes operate. According to the body of evidence, the entity instructed regional councils not to register professionals who graduated from pharmacy programmes offered via distance learning by higher education institutions.
According to Rapporteur Commissioner Gustavo Augusto, preventing a graduate from practising their profession solely on the grounds that the degree was obtained through a distant learning programme, despite being issued by a higher education institution accredited and recognised by the Ministry of Education (MEC), may constitute an infringement of competition law.
Thus, the Tribunal of CADE fined CFF in BRL 1.3 million. The council is also prohibited from issuing any further orders, guidelines, or recommendations aimed at hindering the operation of regular pharmacy degree programmes or at preventing the registration or professional practice of graduates from distance learning institutions.
Brazilian Federal Veterinarian Council (CFMV)
The CFMV, in turn, was sanctioned for issuing regulations that harmed free competition in the markets for veterinary medical services and higher education, specifically in distance learning undergraduate veterinary programmes.
The investigation was initiated after the National Association of Private Universities (ANUP) filed a complaint with CADE against the council for a potential abuse of regulatory power, based on a resolution that prohibited the registration of graduates from distance learning veterinary medicine programmes and established disciplinary sanctions for professionals who supported this mode of education.
According to ANUP, the resolution exceeds the powers of the CFMV, whose role is limited to regulating professional practice, whereas the regulation of higher education falls under the responsibility of the Ministry of Education (MEC).
Rapporteur Commissioner Victor Fernandes emphasised that the resolution created barriers to entry, hindering market access, which constitutes an infringement of competition law. The institution is to pay BRL 200 thousand in fines.
Brazilian Federal Council of Dentistry (CFO)
The administrative proceeding was initiated by
In line with previous decisions, Rapporteur Commissioner Camila Pires-Alves, emphasised that the entity exceeded the limits of its authority by failing to recognise the validity of MEC-recognised degrees, thereby creating barriers to entry for professionals in the field, and imposed a fine of BRL 581,000.
In addition, the Commissioner ordered the revocation of the resolution, should it come back into effect, and prohibited the issuance of new regulations that restrict the registration of graduates from higher education programmes offered in this modality.
Administrative Proceedings:
1. Processo Administrativo nº 08700.002502/2022-11 (CFF)