In a recent decision, published on March 22, the General Superintendence of the Administrative Council for Economic Defense (GS/CADE) refused to hear a transaction broadening the scope of Instituto Jogue Limpo, a civil association operating in the management of solid waste, regarding the National Solid Waste Policy. Previously, the institute operated only in the management of packaging of lubricating oils; after the transaction, its scope was extended to also include the lubricating oils themselves.
As defined by CADE’s Resolution No. 17/2016, an associative agreement is any agreement with a 2-year term or more that establishes a joint enterprise for the exploitation of economic activity, provided that it establishes the sharing of risks and results and that the contracting parties are competitors in the contract market. GS/CADE found that the expansion of the scope of the institute, a non-profit association, does not establish a sharing of risks and results, since it does not bring any type of financial result to its associates. However, the decision points out that, since the other requirements have been fulfilled, the agreement will be considered as an associative agreement if there is any change providing for any kind of sharing of risks and results.