CADE publishes study on conglomerate mergers

On Thursday (31 August), the Department of Economic Studies (DEE) of the Administrative Council for Economic Defense (CADE) released the working paper "Fusões Conglomerais: Teorias do dano e jurisprudência do Cade entre 2012 e 2022” written by Guilherme Resende, Chief-Economist of CADE, Victor Fernandes, Commissioner of CADE, and Isabella Barcelos, intern of DEE.

The study approaches the theory of harm, applied on merger reviews of traditional markets, in conglomerate mergers and addresses some discussions on conglomerate mergers in digital markets compared to CADE’s precedents from 2012 to 2022.

According to the research, the Brazilian competition law has revisited the discussion about the conglomerate effect. The article explores traditional approaches, new topics, and how the agency has integrated the theory of harm with the decision-making practices related to the reviews of mergers and acquisitions.  

There are five sections in the working paper. It places the theory of harm in context, showing the competition issues of conglomerate mergers in digital markets, as well as precedents of CADE over the past decade. It also observes the actors involved, the markets analysed, and the theory of harm applied in the cases adjudicated by the Administrative Tribunal.

The study states that the Brazilian competition authority has gradually improved in the assimilation of modern theories on conglomerate effects in its decisions. However, representatives of the agency recognize it still needs further development in the issue.

Access the working paper "Fusões Conglomerais: Teorias do dano e jurisprudência do Cade entre 2012 e 2022".