The investigative arm of CADE recommends clearance with conditions of joint venture between Viação Águia Branca and Grupo JCA

The Office of the Superintendent-General of the Administrative Council for Economic Defense (CADE) forwarded the joint venture BusCo—between Viação Águia Branca and JCA Holding Transportes, Logística e Mobilidade—for analysis to the Tribunal of CADE. The companies operate in the transport and logistics sector, mainly in Brazilian public transport.

The investigative arm of CADE analysed the horizontal overlap identified in the routes operated by the companies and the vertical integration with the joint venture activities in the national market of digital platforms for the operation of road transport.

Regarding the market of road public transport, the analysis identified anticompetitive risks due to the high market share of both companies, which may result in reduced competition. The Office of the Superintendent-General of CADE also pointed out the risk of possible coordination between BusCo and other companies.

As for road transport coordination via digital platforms, CADE suggests there are risks of unilateral or coordinated abuse of market power. As an example, in interstate and intercity road transport, there are risks of coordination, entry barriers, and low rivalry. Moreover, of the 85 companies in the Brazilian market, three control 50% of the market.

If the Tribunal clears the transaction, the investigative arm of CADE suggests one of the companies should abstain from operating on the routes where horizontal overlaps persist. To avoid coordination between JCA and Águia Branca with other companies, the Office of the Superintendent-General of CADE also suggests the prohibition of partnerships, except in cases previously communicated and approved by the authority.

Once submitted to the Tribunal of CADE, a commissioner will be assigned to the case to serve as its rapporteur and eventually take it to the collegiate body for a final decision.

Access Case no. 08700.002488/2022-48.