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". 

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