Resale Price Maintenance in Brazil: A Moving Target

Ana Paula Martinez, Mariana Tavares de Araujo, Oct 28, 2013

Resale price maintenance is one of the current hot topics in the antitrust community, not only in the Europe and China, but also in Brazil. Brazil’s antitrust authority issued an unprecedented decision in February 2013—departing from previous case law—when, by majority, CADE’s Commissioners took the view that RPM shall be deemed to be illegal unless the defendant is able to prove efficiencies. While fixed-price RPM and minimum-price RPM agreements are considered to be hardcore restrictions by agencies like the European Commission, until February 2013 CADE had taken the view that such practices were not presumed to be illegal, reviewing them under the “rule of reason”.

This article provides an overview of what is the law and practice regarding abuse of dominance cases in Brazil and specifically discusses whether the current approach to RPMs is expected to be followed by CADE in the future.

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