CADE launches administrative proceeding to impose interim measure in music licensing market

On 13 February, the Office of the Superintendent General at CADE (SG) launched an administrative proceeding against the União Brasileira de Editoras de Música (UBEM), for collective negotiation and price-fixing of copyrights in the music synchronisation market for audio-visual projects. Based on the analysis of the case, the SG also decided to impose an interim measure.

The investigation was launched after a complaint from Sistema Brasileiro de Televisão (SBT), a Brazilian TV network, reporting that UBEM had negotiated prices and conditions of music licensing on behalf of their main associates, establishing minimum price lists to contract these rights, in addition to aligning commercial conditions that the associates should follow.

As a result of this conduct, CADE has imposed an interim measure to establish that UBEM must refrain from collectively negotiating prices and conditions on behalf of their main associates regarding music synchronisation rights, as well as from using or imposing price lists. CADE may adopt interim measures, according to provisions of Law 12529/2011, if there is any evidence or a reasonable concern that the respondent's actions, directly or indirectly, have caused, or might cause, harm to the market that is irreparable, difficult to repair, or that renders the final result of the proceeding ineffective.

According to CADE, if proven, these practices are potentially anticompetitive, since they standardise prices and conditions of music licensing to be used in audio-visual works, harming free competition among publishers and record labels.

The defendant was notified to present a defence. After the discovery phase, the SG is to issue a final opinion and submit it to the Tribunal of CADE. If convicted, the individuals involved are subject to fines ranging from BRL 50 thousand to BRL 2 billion.

Access case no. 08700.008710/2024-88.