LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian...
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Transcript of LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian...
![Page 1: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/1.jpg)
LEVY & SALOMÃO A D V O G A D O S
Competition Law in Latin Competition Law in Latin America: Lessons to LearnAmerica: Lessons to Learn
The Brazilian experienceThe Brazilian experience
Ana Paula MartinezAna Paula MartinezJune 15, 2012 – OxfordJune 15, 2012 – Oxford
![Page 2: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/2.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Why competition is important?
![Page 3: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/3.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Competition and Innovation: Inverted U Relationship
![Page 4: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/4.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Lesson No. 1
Competition law can do little for competition in the absence
of a market-oriented framework
![Page 5: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/5.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Landmarks of Competition Law & Policy in Brazil
2012
![Page 6: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/6.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Lesson No. 2
A mandatory post-merger system is extremely ineffective
![Page 7: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/7.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Lesson No. 2
![Page 8: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/8.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Lesson No. 3
The agency needs to have adequate investigatory tools
and sanctions should be designed and effectively
applied to deter violations of the law
![Page 9: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/9.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Law amended in 2000 to include dawn raid powers and leniency agreement
First leniency agreement executed in 2003. More than 20 agreements executed from 2003-2011
More than 300 search and seizure warrants served
Direct evidence: (i) supports criminal charges; (ii) allows the competition agency to impose substantial fines; (iii) supports the administrative rulings before the Judiciary
Administrative and criminal enforcement ensures deterrence
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Ações
Estratégia
![Page 11: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/11.jpg)
![Page 12: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/12.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Operação Pacto 274: Economia de R$ 32 milhõesEvolução do preço e do consumo de gasolina
tipo C em João Pessoa
Real Case: Gasoline Retail Market
![Page 13: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/13.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Case AmountIndustrial Gases Cartels (2010) US$ 1.3 billion
Abuse of market power (2009) US$ 250 million
Security Services Cartel (2007) US$ 25million
Vitamines Cartel (2007) US$ 10 million
Crushed-Rock Cartel (2005) US$ 45 million
Steel Cartel (2005) US$ 210 million
Flat Steel Cartel (1999) US$ 38 million
IT Services Settlement (2011) US$ 20 million
Compressors Settlement (2009) US$ 60 million
Plastic Bags Settlement (2008) US$ 15 million
Cement Settlement (2007) US$ 25 million
![Page 14: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/14.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Multimillionaire fines: is this the right way?
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LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Lesson No. 4
Cooperation among agencies is crucial to ensure outstanding
results
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LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Leading Case: Rio Madeira (2007) A major Brazilian construction company entered
into exclusivity agreements with all turbine suppliers with plants in Brazil prohibiting them to deal with other bidders in connection with the Rio Madeira energy bid
The competition agency adopted an interim measure to suspend the effectiveness of the exclusivity contracts; Settlement reached before the bid took place following intense cooperation between enforcers and regulators
Due to competition, the final price for the energy was 35% lower than the cap price
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LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Leading Case: Rio Madeira
6
Total savings for the 30 years of the concession agreement are estimated
in BRL16.4 billion
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LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Lesson No. 5
Develop a wider culture of competition
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LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Lesson No. 5
Develop a wider culture of competition
![Page 20: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/20.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
What to expect now?
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21
?
Vinícius Carvalho Vinícius Carvalho (Presidente)(Presidente)
PROCADEPROCADEGilvandro AraujoGilvandro Araujo
Superintendente-Superintendente-Geral Carlos RagazzoGeral Carlos Ragazzo
Ana FrazãoAna Frazão Ricardo RuizRicardo Ruiz Elvino MendonçaElvino Mendonça Marcos Marcos VeríssimoVeríssimo
Alessandro Alessandro OctavianiOctaviani
LEVY & SALOMÃO A D V O G A D O S
Novo CADE
Eduardo PontualEduardo Pontual
![Page 22: LEVY & SALOMÃO A D V O G A D O S Competition Law in Latin America: Lessons to Learn The Brazilian experience Ana Paula Martinez June 15, 2012 – Oxford.](https://reader036.fdocuments.in/reader036/viewer/2022070305/5513ff6a550346e2488b4816/html5/thumbnails/22.jpg)
LEVY & SALOMÃO A D V O G A D O S
www.levysalomao.com.br
Greatest challenge: implementation of the pre-merger regime and restructuring of the system
Increased number of complex mergers filed (market consolidation)
Top priority: prosecuting bid-rigging
Next frontier: Private claims