The Tribunal of the Administrative Council for Economic Defense ("CADE") determined, last Wednesday, December 4, 2013, the opening of an administrative proceeding to investigate the abuse of dominant position by the Gemini Consortium, a joint venture constituted by Petrobras, White Martins and GNL Gemini for the commercialization of liquefied natural gas ("LNG").
In addition to the opening of the administrative proceeding, CADE's Tribunal will review its decision ruled in 2006, which approved the joint venture (Act of Concentration no. 08012.001015/2004-08).
According to the Reporting Commissioner of the case, Ms. Ana Frazão, "the high possibility of abuse of dominant position, either by the market structure or by the consortium's own actions; the non-compliance of the restriction considered mandatory by CADE, due to judicial challenge; and the total lack of effectiveness of the Council's decision on the joint venture, because of the absence of adequate monitoring of Geminis' actions considering the new judicial decision, are sufficient to determine the opening of administrative proceedings to investigate violations to the economic order".
Visit us at Tauil & Chequer
Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."
© Copyright 2013. Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. All rights reserved.
This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.