Office of the Superintendent General of CADE investigates violations in the lottery market

On 16 August, the Office of the Superintendent General of the Administrative Council for Economic Defense (SG/CADE) launched an administrative proceeding to investigate antitrust violations in the lottery market involving the Brazilian bank CAIXA and the Brazilian lottery federation FEBRALOT. 

The scrutiny began when AIDIGLOT, the Brazilian association of digital intermediaries of lottery games, reported the case to CADE. CAIXA holds a dominant position and rulemaking power over activities related to gambling/betting and the association alleges that the bank has abused of its market power by preventing lottery shops from doing business with online platforms. According to AIDIGLOT, CAIXA and FEBRALOT also promoted defamatory campaigns against online platforms seeking to hinder their activities. 

In order to maintain a competitive environment in the online lottery market during the investigations, the SG granted an interim measure ordering CAIXA to refrain from imposing the referred sanctions on lottery shops.

The measure also requires the bank to stop making public statements suggesting that the economic activity carried out by online platforms is illegal. Moreover, CAIXA has to remove any online press release published against the platforms and to make public the full content of CADE´s decision. Another order was issued to FEBRALOT, especially concerning the removal of similar statements from its website.

 Access Case no. 08700.003430/2023-01.