CADE's Department of Economic Studies celebrates 12 years in operation

On 16 September 2021, the Department of Economic Studies of the Administrative Council for Economic Defense (DEE/CADE) completed 12 years of operation. The DEE runs technical and scientific activities aimed at ensuring the update of CADE's decision and promoting a free competition culture in Brazil.

Since its establishment, the Department of Economic Studies applies economic theory to public policies related to antitrust issues and performs a significant role on competition defence in the country.

Amongst its duties, the Department prepare studies and opinions that substantiate reviews carried out by the Office of the Superintendent General of CADE and decisions taken on relevant cases reviewed by the commissioners of the Administrative Tribunal of CADE. The studies and opinions can regard both merger or acquisitions and anticompetitive conduct. The DEE also monitors economic sectors and assesses the effects of CADE's decisions on the numerous markets.

Moreover, the DEE operates intensive advocacy activities, which includes promoting competition within governmental bodies and society. To strengthen such activities, in 2020 the DEE established the Unit for Market Studies and Competition Advocacy to deal specifically with this agenda.

Furthermore, based on recommendations of the Organisation for Economic Co-operation and Development (OECD), the Department of Economic Studies expanded its number of staff with a doctorate in Economy. The staff is responsible for developing studies of relevance to the Brazilian antitrust policy. The Department's technical body currently consists of more than 30 employees.

During its 12-year history, the Department of Economic Studies has elaborated 27 working papers to disclose economic studies regarding CADE's fields of work, in addition to 13 issues of the "Review of CADE's Decisions" — a series of studies that consolidate the authority's precedents on a given market, taking into consideration economic and competition aspects.

As to technical opinions, the DEE has issued 265 documents related to various topics comprising merger and acquisition transactions and investigations of conducts harmful to the competitive environment. Besides, the Department elaborated three of CADE's guides in partnership with other units of the agency and has already contributed to several discussions on antitrust issues.

Aiming at contributing with technical and practical knowledge on matters related to antitrust, throughout the years, the DEE held several editions of the events titled Seminários Economia & Defesa da Concorrência and Observatório da Concorrência.

"Today we celebrate the 12th anniversary of the Department of Economic Studies. We look back proudly and positive that every person — who made part or is part of it — has contributed to building a department of excellence. And the efforts remain: our daily commitment drives us to new achievements and contributions to the Brazilian antitrust policy," states Guilherme Resende, chief economist of CADE.

History

The Department of Economic Studies of CADE was created with the objective of making the complex economic theory comprehensible to those working on the field of antitrust. On 16 September 2009, the Administrative Tribunal of CADE then presided by Arthur Badin, approved the creation of the DEE through CADE's Resolution no. 53/2009. At the time, the department was established as an advisory unit linked to both the Office of the President of CADE and the Tribunal of CADE.

As Law 12529/2011 came into force in May 2012, restructuring the Brazilian Competition Defense System, the DEE was recognised as a body part of CADE's structure together with the Office of the Superintendent General and the Administrative Tribunal.

The recognition of the Department of Economic Studies as a separate body has strengthened its performance within the agency. Since then, it holds a relevant position regarding the development of CADE's competitive intelligence, following the worldwide tendency of aligning economic reviews with the administrative decisions of the authority.