CADE imposes interim measures against LFU and Libra

The Administrative Council for Economic Defense (CADE) determined that the Liga do Futebol Brasileiro (LIBRA) and Liga Forte União do Futebol Brasileiro (LFU) are not to admit new football leagues until the conclusion of the merger review.

Commissioner Victor Oliveira Fernandes, rapporteur of the case, issued interim measures after investigating whether the creation of the leagues happened before CADE’s clearance, a practice known as gun jumping.

Regarding the LFU, the decision highlights that recent admissions of new leagues such as the Esporte Clube Vitória and Clube Atlético Mineiro may increase the anticompetitive effects of the transaction, before CADE's final decision. The authority requests that the documents related to these memberships must be submitted.

Since 2023, the Office of the Superintendent General at CADE (SG) investigated complaints against the negotiation of commercial rights and broadcasting rights for national championships through associations of the football leagues. The SG concluded that there was evidence of gun jumping, stating that the LFU and Libra constitute a joint venture, which requires a mandatory notification.

According to the decision, the temporary suspension of new entries aims to preserve the structure of the leagues and ensure the effectiveness of the investigation. A daily fine of BRL 50 thousand is to be applied in case of non-compliance.

The cases remain under review by the Tribunal of CADE.

Access Cases:

• Liga Forte União Case no.: 08700.005511/2023-37
• Libra Case no.: 08700.007461/2023-22