Innovation concerns in horizontal mergers:

Abstract

Objective: this paper investigates how Cade – the Brazilian antitrust authority – has addressed innovation concerns in merger assessments, using antitrust literature and the experiences of the United States and the European Commission as reference points. Method: review of academic and institutional literature, data collection, and case studies. Conclusions: although Cade follows the standard approach in its Guidelines used by the US and the European Commission, its experience with innovation concerns remains more limited than these jurisdictions. An innovation-specific assessment was conducted in only one case: Bayer/Monsanto (2018). In most cases, innovation was addressed within the standard analysis, often in an insufficient manner. The findings highlight the need to develop a local approach tailored to the Brazilian context, as much of the current discussion relies on foreign case law. Finally, no significant evolution was observed between 2015 and 2022.

Keywords

• competition policy
• horizontal mergers
• innovation concerns
• Brazil
• Cade