In a recent trial session held on November 9, CADE’s Court judged the transaction which consisted in creating a new Intelligent Credit Manager (“GIC”) formed by the country’s five largest banks – Itaú, Banco do Brasil, Caixa Econômica Federal, Santander and Bradesco. The Bureau seeks to boost the development of registration of positive and negative credit information from both companies and individuals. The analysis of the case was marked by the debate concerning the efficiencies and possible concerns caused by the transaction. On the side of possible competition concerns, it was indicated the vertical integration between the banks and the new company, having the Commissioner João Paulo de Resende highlighted that there is a double concern due the existent vertical integration in other related markets (such as the credit card market). Regarding the positive effects of the transaction, the Rapporteur-Commissioner Paulo Burnier presented, specially, the potential increase of the concession of credits and the decrease of risk involved in loans, due to the development of this positive registration. Finally, following the General Superintendence’s opinion, the transaction was approved by majority by CADE’s Court, conditioned to remedies to ensure the complete independence of the parts, such as (i) the prohibition to share structures with the GIC, (ii) the prohibition of the GIC to operate in other markets and (iii) the prohibition of marketing campaigns to promote the GIC.
2016/11/23
