CADE investigates alleged collusion in air passenger market

The Administrative Council for Economic Defense (CADE) launched an administrative proceeding to investigate alleged collusion on domestic routes of significant commercial importance, involving Gol and LATAM.

The Office of the Superintendent General at CADE (SG) opened the investigation in 2023, with the "Projeto Cérebro" team applying advanced data analysis techniques to examine the use of pricing tools and market databases.

As a result, the assessment indicated the existence of a pattern of interdependence between the price movements of the companies, which led to an analysis of whether this behaviour was in line with competitive dynamics or reflected mechanisms of tacit collusion facilitated by the use of algorithms and data sharing.

In addition, the SG also reviewed the contracts signed by LATAM and Gol with providers of pricing intelligence, content distribution, and dynamic pricing solutions, identifying that such tools may lead to the exchange of commercial sensitive information, reducing competitive uncertainty, and increasing the potential for coordination.

It highlighted that, in concentrated markets with a high level of information transparency, the combined use of algorithmic tools, as well as shared data infrastructures can increase competitive risks.

Conclusion

After the administrative proceeding is launched, the defendants are to be notified to file answers, specifying the evidence they consider suitable. The opening of the proceeding does not constitute a final decision, and is aimed at furthering the investigation, ensuring the right to full answer, and allowing a full examination of the evidences, as provided for in Law 12.529/2011. The Tribunal of CADE is to issue the final decision.

Access Case no. 08700.007894/2023-88