The General Superintendency of the Administrative Council of Economic Defense (GS/CADE) decided to implement an injunction on Monday 1st February in Administrative Proceeding No. 08000.019160/2010-14, which investigates the existence of anticompetitive conduct in the dubbing market in Sao Paulo.
According to the decision, the Sindicato dos Artistas e Técnicos de Espetáculos e Diversões do Estado de São Paulo (Sated/SP) (The Artists and Technicians of Shows and Entertainment Union of the State of São Paulo), the investigated entity, has established minimum professional rates for hiring voice-over artists and directors, in the form of collective labor agreements. In addition, Sated/SP would also be foreclosing the market by illegally requiring registration of these professionals and resorting to threats and coercive methods, such as boycotts and strikes, to ensure compliance with such agreements.
The lawsuit originated from a complaint filed by the Sindicato da Indústria Audiovisual do Estado de São Paulo (Siaesp) (Audiovisual Industry Union of the State of São Paulo), in connection with a discussion held in the Brazilian Labor Justice, regarding the existence of employment relationship between dubbing artists and the studios. According to the GS/CADE, once ruled that there is no employment relationship between them, there would be no legal basis for Sated/SP to impose minimum rates table and other conditions for hiring via collective bargaining.
Thus, according to the GS/CADE’s decision, Sated/SP should refrain from elaborating and updating tables, collective agreements, or any other document that determines minimum hiring rates or that promotes and discloses rates related to fees for dubbing services. Moreover, it should also refrain from imposing any requirements for future hiring of these professionals, except in the case of an employment relationship. In such cases, the SG/CADE understands that the union has the legal authority to carry out such practices.
This investigation enhances the antitrust authority’s attention to potential anticompetitive conduct related to the labor market. Recently, CADE began an investigation into potential illegal conduct involving employees in the HR departments of dozens of companies. This investigation is examining anticompetitive conduct in the labor market dealing with the product industry, equipment, and healthcare related services.
The complete Technical Note can be accessed through this link.
