In addition to reducing the number of members of CADE’s Tribunal, the proposal also provides for changes in the criteria for investiture in office. In the new wording, candidates must have an academic background compatible with the position and professional experience that meets at least one of the following conditions:

• minimum of 10 years in the public or private sector in a senior management position connected with competition law;

• minimum of 10 years as a self-employed professional in CADE’s field; or

• at least four years holding: top 2 non-statutory management level or leadership (statutory) position in a company, teaching office or research of competition law themes, or holding a Public Trust Position, level DAS-4 or higher.

Finally, the bill also provides for a solution to eliminate the issue of the Tribunal’s lack of quorum due to Commissioner’s end of the mandate, a situation that has paralyzed trial sessions in the past. For that, a replacement list will be drawn up with 3 public servants occupying leadership positions within CADE chosen and designated by the President of the Republic from 9 servants appointed by the CADE’s Tribunal.

During the vacancy period until the new Commissioner appointment, the vacant position will be held by a member of the replacement list for a maximum of 180 days. After the deadline, it will be replaced by the next one on the list.

If there is no appeal, the bill goes straight to Senate deliberation without going through the plenary of the Chamber of Deputies.

O conteúdo Bill that changes the criteria for selection of CADE’s Commissioners advances in the Chamber of Deputies aparece primeiro em Grinberg Cordovil Advogados.

• Concerns related to acquisitions of cross-shareholdings between rivals operating in the healthcare sector, even minor ones, since the investing company may gain access to information about strategic and operational moves of the invested company.
• Relevance of rivalry analysis: the number of existing competitors, idle capacity, market shares, and the existence of specific market regulations, since these markets are highly impacted by sectorial regulation.
• Considerable increase in vertical integrations and portfolio effects, involving the healthcare market, given the increasing consolidation of players in the sector. There are constant concerns, regarding market foreclosure to the extent that some transactions might have the effect of preventing or hindering the development of activities by competitors that are not vertically integrated or part of a complementary portfolio.
• The increase of notifiable cases in recent years: when the first peaks occurred, the average recorded was 15 cases annually between 2008 to 2012. However,  the annual average doubled to 31 cases from 2018 to 2021, reaching a peak of 48 filed transactions in 2020.

Considering all of the aspects mentioned above, CADE indicates that it is closely watching the particularities and the recent changes in the sector to ensure the promotion of free competition in the healthcare sector.

The full study in Portuguese can be viewed here.

O conteúdo CADE’s new study analyzes the consolidation of economic groups and the effects of vertical integrations in the healthcare sector aparece primeiro em Grinberg Cordovil Advogados.