The CADE and Purchasing Power in the Agricultural Sector

Authors

  • Carlos Emmanuel Joppert Ragazzo Fundação Getúlio Vargas - RJ
  • Kenys Menezes Machado CADE

DOI:

https://doi.org/10.18836/2178-0587/ealr.v4n2p295-314

Abstract

The analysis of cases involving buyer power in CADE is still recent, for which reason the agency has not established case law on the subject. In 2011, the judgment of cases Sadia-Perdigão and Fischer-Citrovita allowed the issue to be discussed in greater depth. In the first transaction, the buyer power involved the market of live animals for slaughter, while in the second the acquisition of fresh orange for juice production. In Sadia-Perdigão case, despite high concentrations, it was concluded that there was no nexus between the transaction and the risk of abuse of buyer power by the firms. Despite the concentration lower than that observed in the Sadia-Perdigão case, remedies were imposed in the Fischer-Citrovita case. The history of the market, the contractual relationships between companies and producers and the market perspectives were important factors for the outcome of the decision. Possibly, the structure of analysis developed in those cases will be used as references in future disputes involving buyer power of the agribusiness sector in Brazil.

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Published

2014-06-01

Issue

Vol. 4 No. 2 (2013): Economic Analysis of Law Review

Section

Papers

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