CADE investigates international cartel of broadcasting rights for sporting events

The alleged anticompetitive conduct is estimated to have occurred from at least 2008 to 2017

Published in Feb 07, 2022 05:31 PM Updated in Jun 27, 2023 03:49 PM

In a direction published on 3 February 2022, the Office of the Superintendent General of CADE launched an administrative proceeding to investigate an alleged international cartel, with effects in Brazil, in the market of broadcasting rights for sporting events and provision of consultancy-related services. A total of 8 companies and 37 individuals are under investigation.

According to the Office of the Superintendent General, there is strong evidence that the involved parties signed anticompetitive agreements to fix prices and rig bids in private procurement for the broadcasting of sporting events. Moreover, the parties supposedly divided the market through bid agreements, cover bidding, and bid suppression. Besides, there is evidence the companies exchanged competitively sensitive information.

The investigations suggest the conduct affected companies competing for global or multi-territorial rights to broadcast sporting events held by sports federations, sports clubs, and other rights holders.

Some of the sports broadcasting rights and related rights were resold or sublicensed to Brazilian broadcasters and/or associated to other sporting events in Brazil. Additionally, the behaviour affected right holders in hiring representatives, advisors, and consultants to sell media rights.

The anticompetitive conduct is estimated to have happened from at least 2008 to 2017.

Once the administrative proceeding commences, the defendants will be notified to file their answers. In its course, the Office of the Superintendent General will either find the defendants guilty or dismiss the case, submitting it to CADE's Tribunal for a final decision.

Whilst the companies involved in the conduct are subject to fines ranging from 0.1% to 20% of their total sales, in addition to other penalties, individuals pay fines ranging from BRL 50,000 to BRL 2,000,000. Individuals in managerial roles are imposed fines ranging from 1% to 20% of the amount levied on the company.

Access case no. 08700.002012/2021-26..