CADE publishes guide for non-horizontal merger reviews

The guide introduces the best practices and procedures adopted by the agency in vertical and conglomerate merger reviews

Published in Apr 17, 2024 02:47 PM Updated in Apr 18, 2024 09:02 AM

On 17 April, the Administrative Council for Economic Defense(CADE) published the Guia V+, a guideline for non-horizontal merger reviews. The document provides clear guidelines for vertical and conglomerate merger reviews, making the decisions of the Brazilian antitrust authority more transparent.  

The guide aims to instruct government authorities on the best antitrust practices related to the matter, promoting consistent and effective performance. In addition, it focuses on assisting market players in understanding the steps, techniques, and criteria used by CADE in the reviews, providing a source for decision-making in business practices.  

The Guia V+ is the result of discussions and activities carried out by a working group of representatives from each unit of CADE, as well as with the assistance of the Brazilian Institute of Studies on Competition, Consumer Affairs, and International Trade (IBRAC). The working group started its activities in July 2022. They focused on issuing the first draft of the guide, preparing studies, and doing research on vertical mergers and their implications for competition law. The document had the contribution of consultants from the United Nations Development Programme (UNDP) and the civil society during the review phase, when economic agents and experts contributed to improve the guidelines in a public consultation.  

The publication comprises five sections. One of them defines the procedures for non-horizontal merger reviews. Other sections include information on vertical and conglomerate mergers.  

According to the document, the guidelines are neither binding nor a rule. Therefore, the non-fulfilment of any provisions in the document do not invalidate the reviews. The publication also highlights that the analytical method adopted by CADE is to fit each specific case, considering the characteristics of the markets involved, and the activities of the companies, among other elements.  

The Guia V+ for non-horizontal merger reviews reflects CADE’s mission to ensure a healthy competition environment, to seek updates in its practices and to adopt the best international standards. The initiative reinforces the role of CADE in fostering competition in Brazil.  

Access the Guia V+ (in Portuguese only). 