CADE releases study on telecom markets

On 10 April, the Administrative Council for Economic Defense (CADE) released the 18th edition of its series of studies named Cadernos do Cade covering telecommunication markets. The publication aims to analyse the competitive aspects of the sector in Brazil with a focus on fixed and mobile lines, fixed broadband, and infrastructure.

The document examines 142 mergers and acquisitions and 18 administrative proceedings for investigating anti-competitive conduct from 2000 to June 2022 regarding the telecom sector, pointing out concepts and analysis criteria CADE consolidated within the period.

The study first presents an overview of the global telecommunication market, highlighting its economic relevance and main dynamic aspects. Then, information about the market in Brazil follows, highlighting the sector’s infrastructure, regulatory framework, and bottlenecks. 

The subsequent section includes an analysis of merger reviews the Brazilian antitrust authority held during the period covered, and the following section addresses the administrative proceedings concerning anti-competitive practices. Lastly, the final remarks stress issues to be addressed in future antitrust analyses of these markets.

Based on the study, the telecommunication sector plays a key role in digital transformation since its infrastructure is essential for making feasible the digital economy. In 2021 alone, the industry recorded a gross revenue of BRL 254 billion and investments of BRL 34 billion and was responsible for 545 thousand direct jobs.

Consequently, it affected several industries, especially those related to urban mobility, education, tourism, financial services and other sectors that, through technology companies, rely on the telecommunications infrastructure.

About Cadernos do Cade

First issued in 2014, Cadernos do Cade is a series of documents the Department of Economic Studies regularly publishes to consolidate, systematise and disclose CADE’s case law related to a specific market – considering that market’s economic and competitive aspects.

The study guides CADE towards its institutional mission of providing technical and practical knowledge and contributing to academic works related to antitrust matters.

The document is available in Portuguese only here.