Originally published February 22, 2011

Keywords: CADE, fine, non-notified transaction

In its first Ordinary Session of Judgment of the year, the Administrative Council for Economic Defense (CADE) imposed a fine for untimely notification, due to an investigation carried out by the Secretariat of Economic Law. The investigation refers to four transactions related to a food-industry company's acquisitions that were not notified to the Brazilian Antitrust System (SBDC) for merger review.

CADE decided that it should have been notified of the transactions because the purchaser's turnover met the threshold set forth in Law no. 8,884/1994 (Antitrust Law).1 The penalty imposed—nearly R$1.4 million—demonstrates effective enforcement by the SBDC. Such penalties may become more commonplace as the new antitrust law, which is still pending before the National Congress, contains a specific provision for investigating non-notified transactions.

This decision shows how important it is for the economic players to comply with the Antitrust Law, especially in the negotiation of transactions.


1. According to the article 54, paragraph 3, of the Antitrust Law and the CADE's Precedent no. 1/2005, the notification is mandatory if at least one of the economic groups involved in the transactions had a turnover of at least R$400 million in the last financial year in Brazil.

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