CADE enacts five new administrative rules

Aiming to optimize its internal procedures in merger control and behaviour cases, CADE has issued five new administrative rules on September 22. Rules# 54, 55, 56 and 57 amend CADE's internal guidelines; for companies and individuals that are parties in antitrust proceedings in Brazil, new rules#54 and 57 should receive the greater attention.

While administrative rule#54 supresses CADE's duty of officializing its decision to the public by means of the publication of a summary of each decision in the Brazilian Official Gazette, new rule#57 sets forth new rules for the imposion of fines related to the submission of misleading information.

Finally, new administrative rule#58 establishes new mechanisms for the control/review of the truthfullness and veracity of the information provided by companies in merger control filings.

Industrial gas industry once more among highlight's of CADE's Session

Two weeks after convicting companies and individuals in the industrial gas industry for collusion, CADE analysed petitions for clarification presented by the defendants and decided to review the nature of the interest applicable to the case. Compound interest has been replaced by simple interest. As a result, the total amount of the conviction decreased from R$ 2.9 billion to R$ 2.3 billion. It is still the highest total fine ever imposed by CADE.
in its website, CADE divulged the amounts to be paid by each company and by each individual. Fines imposed to companies were:
Air Products Brasil Ltda.: R$ 179,202,512.38
Air Liquide Brasil Ltda.: R$ 197,561,635.66
Linde Gases Ltda.: R$ 188,391,885.29
White Martins Gases Industriais Ltda.: R$ 1,758,545,326.50
Indústria Brasileira de Gases: R$ 6,708,631.21

CADE will keep an eye on increasing concentration on the health care industry

On yesterday's judgment session, CADE's commissioners have expressed the agency will follow attention the consolidation of health care companies.

While approving without restrictions the of two aqcuisitions involving large operators of health insurance plans, Commissioner Ricardo Ruiz noted that the industry is going through a very fast process of concentration and that competition concerns may arise in the near future.

Commissioner Carlos Ragazzo added that there is also a movement towards verticalization in the sector with integration of plan operators, hospitals and even pharmacies.

The one highlight of CADE's last Session: Industrial gas manufactures convicted for cartel

During CADE's Session in August 4, 2010, industrial gas manufacturers Linde, Air Liquide, Air Products, Indústria Brasileira de Gases and White Martins, as well as seven individuals connected to the companies, have been convicted for illegal collusion. According to CADE's decision, which was unanimous, companies and individuals have been involved in market division practices, with serious consequences to the Brazilian market and to the public health system. Upon impediment, CADE's President Arthur Badin and Commissioner Olavo Chinaglia have not participated in the judgment.

The investigation has been initiated in 2003 and culminated with the highest administrative fines ever imposed by CADE (totalizing R$ 2.9 billion – approximately US$ 1.7 billion). The case has been distinguished by several judicial and administrative incidents. Criminal investigations - still in course - included dawn raids and wires, and their fruits have been transferred to the administrative investigation, which has been strongly challenged by companies and individuals. The case against one particular individual has been shelved.

Besides fines, CADE recommended that federal authorities did not grant tax benefits or subsidies to the convicted companies, and that existing benefits were cancelled. Finally, CADE determined that the decision and other materials of the files were published in the Midia.