CADE to investigate big techs’ acquisitions of AI startups

On 22 August, the Office of the Superintendent General of the Administrative Council for Economic Defense (CADE) launched four administrative procedures to investigate antitrust reports involving big techs’ acquisitions of artificial intelligence (AI) start-ups.

The administrative procedures aim to understand if these acquisitions, which would not require mandatory notifications, are to be investigated due to potential competitive harm.

The launching of an administrative procedure to investigate mergers can occur before an administrative proceeding. The Brazilian antitrust authority can use this document to check mergers that do not require a mandatory notification, but that could have their submissions requested, under Paragraph 7, Article 88, of Law 12529/2011.

The procedure openings do not necessarily mean that the mergers are to be notified or that there were competitive harms. At the end of the investigation, the Office of the Superintendent General is to decide to dismiss the case, consummate the transaction, or launch the administrative proceeding for the submission of mergers and review of the possible competitive harm of the transaction.

Procedures
08700.005962/2024-55 investigates the acquisition of Anthropic by Amazon.
08700.005961/2024-19 investigates the acquisition of Mistral AI by Microsoft.
08700.005638/2024-37investigates the acquisition of Character AI by Google.