Op-ed: Brazilian skies open for foreign business

In an article published by Latin Lawyer, partner Eduardo Frade and associate Guilherme Palu argue that the provisional measure opening Brazil’s aviation industry to unrestricted foreign investment could boost the economy and the legal sector, but only if congress makes the change permanent.

“Until last month, foreign companies that weren’t lucky enough to have a founder with Brazilian citizenship could invest no more than 20% in a Brazilian airline. After years of debate, this restriction was lifted on 13 December 2018 when the Brazilian federal government issued a temporary decree allowing foreigners to control 100% of airlines’ voting capital. This temporary decree, which needs to be approved by the national congress to become permanent, creates several investment opportunities for foreign investors and will likely result in more mergers and acquisitions in the sector. This also means opportunities for law firms to provide legal assistance on regulatory matters and structuring new businesses”.

Full article available here.

Brazilian Government Concessions — Q&A on the Newly Issued Bid Notices (Federal Government)

On November 30, 2018, the Brazilian Federal Government issued bid notices in order to transfer the operation of 12 airports, 4 port terminals and the “NorteSul” Railroad to the private sector. They are part of the Federal Government’s “Investment Partnerships Program” (PPI),  launched in 2016 to expand and accelerate private investments in the infrastructure sector. Since the public auctions can only take place one hundred days after the publication date of the bid notices in the Official Federal Gazette, the upcoming Bolsonaro Administration will be responsible for conducting them.

The key aspects of the issued bit notices are set out in this article.

VMCA partners speak at a competition law, consumer protection and digital economy seminar

VMCA partners Vinicius Marques de Carvalho and Marcela Mattiuzzo spoke on December 18th at the Brazilian Institute of Consumer Defense (IDEC)’s seminar Competition law, consumer protection and digital economy: What are the spaces and opportunities for civil society organizations?. 

The event took place in São Paulo and aimed, among other subjects, to discuss the civil society organizations role in relation to competition law issues.

According to Vinicius, civil society groups should direct complaints to the Administrative Council for Economic Defense (CADE) when they see anticompetitive conduct. They should also ask to participate as interested third parties in merger reviews and ongoing probes, he said.

Vinicius also said that, when submitting documents to CADE, groups should always be clear in explaining the competition issues they see in the case: “looking at data, for example, a company holding a vast amount of data isn’t a problem by itself. You must have an argument for why this situation is a problem from an antitrust perspective”.

The seminar’s full programme is available here.

Siemens/Alstom could harm competition in Brazil

The proposed merger of European rail transportation leaders Siemens and Alstom may lower competition in the railway signalling market, Brazil’s antitrust watchdog has said, tells Global Competition Review (GCR).

Commenting on the General Superintendence’s decision of sending its report to CADE’s administrative tribunal without any specific recommendations for what conditions should be imposed, although arguing the deal should not be unconditionally cleared, partner Eduardo Frade explained to the British publication that it is not uncommon for the investigator to refrain from specifying proposed remedies. He said the investigative team tends only to recommend detailed conditions on cases on which it has strong opinions, to assist the tribunal in its assessments.

Full article available here.

Vinicius Marques de Carvalho listed among the leading Competition attorneys in Brazil by Best Lawyers

Partner Vinicius Marques de Carvalho was included among the leading Brazilian Competition and Antitrust practitioners in the recently published 9th Edition of The Best Lawyers in Brazil.

Best Lawyers is a US legal directory operating in the market for more than 30 years, which recognizes each year the practice of lawyers by conducting peer-review surveys around the world.

Future of enforcement spurs speculations as Brazil elects new leader

Partner Eduardo Frade talked to Global Competition Review (GCR) about antitrust perspectives regarding the Brazilian New Government. President-elected Jair Bolsonaro will nominate to replace six key members of the country’s competition watchdog when their terms expire next year.

According to Eduardo, “that the best way to predict the future direction of antitrust enforcement is for Brazil to analyse who the current administration nominates”. Eduardo also added that the  appointment of Sergio Moro as the country’s new minister of justice appears to be a clear sign that Bolsonaro will take a hard stance against corruption and competition violations, while the Chicago-educated Brazilian economist Paulo Guedes as the country’s new finance minister may mean the country can expect a more liberal approach to business and government intervention matters.

Full article available here.

 

Brazilian antitrust lawyers await Bolsonaro’s CADE nominations

Partner Eduardo Frade talked to Latin Lawyer about antitrust perspectives regarding the Brazilian New Government. President-elected Jair Bolsonaro will nominate to replace six key members of the country’s competition watchdog when their terms expire next year.

According to Eduardo, “that the best way to predict the future direction of antitrust enforcement is for Brazil to analyse who the current administration nominates”. Eduardo also added that the  appointment of Sergio Moro as the country’s new minister of justice appears to be a clear sign that Bolsonaro will take a hard stance against corruption and competition violations, while the Chicago-educated Brazilian economist Paulo Guedes as the country’s new finance minister may mean the country can expect a more liberal approach to business and government intervention matters.

Full article available here.

Vinicius Marques de Carvalho to speak at IBRAC’s annual seminar

Partner Vinicius Marques de Carvalho speaks today at IBRAC’s (Brazil’s most influential think tank on competition policy) annual seminar, which takes place in Campos do Jordão from today until Friday, October 26.

Vinicius will be a panelist at the second panel of the day, entitled “Damages claims in Brazilian antitruste: defining the borders between Fighting cartels and the leniency programe”, alongside other corporate lawyers, consultants and Cade’s members.

Other topics which will be discussing during the seminar are challenger in negotiating remedies in mergers and acquisitions, how does the regulation fintechs change competition in the market, how are the BRICS countries dealing with antitrust and digital economy and the challenges of global merger across the main jurisdictions in competition enforcement.

Programme and more information are available at the seminar’s webpage.

Partner Eduardo Frade to discuss the Brazilian merger enforcement in NY

The Brazilian merger enforcement will be the focus of a breakfast organized by the New York State Bar Association (NYSBA) Antitrust Law Section next Friday, October 19. VMCA partner Eduardo Frade will be one of the panelists in the discussion entitled “Merger Control in Brazil: Fundamentals and Latest Developments”.

The debate will cover the basics of a Brazilian filing, CADE’s standard of review, timing, negotiation of remedies, and the impact of review by other large jurisdictions. The panelists will also look back at some of the recent transactions that CADE has reviewed to shed light on developments and trends in merger control enforcement in Brazil.

The event will take place at Allen & Overy LLP New York office, at 1221 Avenue of the Americas. More information is available at the Antitrust Law Section webpage and in the program flyer.