CADE releases report on control of data and competition in merger reviews

The Administrative Council for Economic Defense (CADE) released the report “Control of Data, Market Power and Potential Competition in Merger Reviews”, produced by the Merger Working Group from the International Competition Network (ICN).

The report aims to analyse the methods applied to evaluate the effects of control of data on merger reviews, market power and competition in the digital market. The project resulted from an international research conducted by CADE, as a co-chair of the Merger Working Group, among competition authorities of the ICN member countries. 

In addition to the interviews, the preparation of the document involved a Webinar and a panel on the 2023 ICN Annual Conference about the first outcomes of the project.

Alexandre Cordeiro, president of CADE, pointed out that the report suggests using qualitative and quantitative criteria to assess companies’ market power and highlights the value of a case-by-case merger review, considering specific characteristics of the affected markets. "Disruptive innovation and acquisition of potential competitors are other factors to be considered when reviewing the transaction."

The report is a means to highlight the main debates, concerns, and suggestions from authorities and experts on mergers in digital markets. Moreover, respondents point out the best practices and challenges regarding the topic.

CADE and the ICN (International Competition Network) hold the biggest international forum for competition defence, conducting five different working groups: cartel, merger, unilateral conduct, advocacy, and agency effectiveness.

Nowadays, CADE co-chairs the Unilateral Conduct Working Group (UCWG) along with authorities from France, Spain, and Turkey.

Founded in 2001, the working group comprises 140 authorities of 130 jurisdictions and non-governmental advisors, such as the OCDE, the WTO, and the UNCTAD. These authorities volunteer to promote a global partnership on best practices and antitrust regulations.

Access the report available here.