Highlights of CADE’s 470th Judgment Session

According to the bulletin published today at CADE’s official website (www.cade.gov.br), highlights of the Judgment session were:

(i) the approval of the transaction among Ipiranga Produtos de Petróleo SA, Chevron Latin América Marketing LLC and Chevron Amazonas LLC (Concentration Act n. 08012.009025/2008-15). The parties agreed to a Consent Decree disposing about conditions in connection the transaction. Ipiranga (part of Ultra Group) acquired the whole business of distribution and resale of liquid fuels and distribution of natural gas for use in vehicles that belonged to Texaco (part of Chevron Group), and

(ii) the continuation of the judgment of the case involving Seva and Continental’s Division VDO (acquired by Continental a few years ago from Siemens). CADE’s President Arthur Badin interrupted the judgment. He will review the case and bring his vote in the next session, after 4 votes for conviction and 2 for the acquaintance. Seva represented against VDO for sham litigation and invitation to collude in the tachographs.

It is also worth mentioning, although not included at CADE’s Bulletin, the analysis of a settlement proposal in connection to a cartel investigation in the air cargo industry. We will comment on it in an specific post, later on today.

CADE, SDE and INPI set a Covenant to work more closely

During the Internation Seminar of Intelectual Property and Competition Policy that took place in Rio de Janeiro between June 7 and 8, 2010, Brazilian Institute for Intelectual Property (Instituto Nacional da Propriedade Industrial - INPI), Administrative Council of Economic Defense (Conselho Administrativo de Defesa Econômica - CADE) and the Secretariat Of Economic Law (Secretaria de Direito Econômico -SDE) of the Ministry of Justice has set a Covenant in order to act with grater integration.

The partnership is set for the next two (2) years and will allow CADE and INPI to aknowledge one another's investigations and Proceedings, being able to issue opinion regarding theirs expertise - respectively Competition and Intelectual Property - when requested.

INPI's General Attorney, Mauro Maia, has stated that the preocupation is that companies intend to extend the patent period through litigation, aiming to maintain an improper monopoly. With the covenant, both authorities will then have the proper information to deal with those sham litigation cases.

INPI has made contact with CADE for the agreement after noticing a series of suits promoted by pharmaceutical companies.