Thursday, October 6, 2011
Posted by D. Daniel Sokol
We would like to inform you that the House of Representatives has finally passed the Bill no. 06/2009, which brings very important changes to the Brazilian Competition Laws. These changes, as you might be aware of, involve both merger review and anticompetitive conducts' investigation rules.
In respect to merger review, the law introduces a suspensory regime (i.e., the competition authority decision becomes a condition for closing the transaction, as it is currently done in the US and the EU) and modifies the notification thresholds. In terms of rules pertaining the investigation of potentially anticompetitive conducts, changes will be made in relation to the leniency program, as well as in settlements and criminal liability.
The Bill also unifies in one main body (CADE) the system that is now comprised of three different bodies (SDE, SEAE and CADE). The Bill is now subject to President' sanction, and it is likely to become effective in the near future. If fully approved by the President, changes in the merger control regime will be effective in 180 days after the new Act is published.