This presentation by Brazil was prepared for the break-out Session 1, “Surveys and other data gathering techniques”, in the discussion “Economic Analysis in Merger Investigations” at the 19th OECD Global Forum on Competition on 9 December 2020. More papers and presentations on the topic can be found at http://oe.cd/eami. This presentation was uploaded with the author’s consent.

1. ECONOMIC ANALYSIS IN MERGER
INVESTIGATIONS
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B1: SURVEYS AND OTHER DATA GATHERING TECHNIQUES
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2. 1. MERGER CONTROL IN BRAZIL AND THE ROLE OF CADE´S
DEPARTMENT OF ECONOMIC STUDIES
 Law 12529, of 30 November 2011, structured the Brazilian Competition Defense System (SBDC)
 The Department of Economic Studies (DEE) within CADE’s structure:
CADE
Department of
Economic Studies
(DEE)
Administrative
Tribunal of
Economic Defense
(Tribunal)
Second and last
administrative
instance
General
Superintendence
(SG)
Discovery phase
and first decision-
making instance
DEE assists both the Tribunal and the SG by
providing economic subsidies for decision-
making in cases of investigations of
anticompetitive practices or merger reviews.
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3. THE DEPARTMENT OF ECONOMIC STUDIES (DEE)
Proceedings
(Total)
Proceeding
s (DEE)
Percentage
Complex 51 25 49%
Challenged 46 21 46%
Appealed by an
interested third party
18 3 17%
Requested by the
Tribunal
6 2 33%
DEE contributions on CADE's decisions, by type of proceedings nature (2015-
2019)
Chief Economist
Coordination of Merger
Analysis
Coordination of
Anticompetitive Conduct
Analysis
Coordination of Market Studies
and Competition Advocacy
Deputy Chief Economist
 DEE's contribution to merger control is not restricted to issuing
technical opinions.
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Elaborated by: DEE/CADE. Note: A proceeding may have more
than one type of procedural nature, i.e., a complex proceeding
may be directed to the Tribunal for judicial review, and/or an
appeal by an interested third party may be submitted, and/or the
proceeding may be requested by the Tribunal.

4. GUIDELINES FOR A DATA REQUEST
 Guide for data submission to the DEE (2019, Portuguese
version only)
 More quantitative data with more fragmented
information about products and services directed ->
better analysis.
 The Guidelines aims at reducing the time on data
processing and establishes best practices for data
submission.
 Best practices:
 Complete data
 Coherent data – consistent data and a dictionary of
variables
 Timely submission – concerning the already
established deadline
 Cooperation
 Transparency
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Some standards to data submission:
 For quantitative variables, do not insert the unit of measure
in the cell, use numbers only.
For numbers with 2 decimal cases, the comma must be
used as a decimal separator.
Do not use a thousand separator.
 For missing values, report as “NA”.
 Do not use pivot tables or merged cells,
they difficult software reading.
 Standards for temporal and geographic
dimensions.
 Suggestions of product and services
discrimination.

5. CASE:
ARCELOR-MITTAL & VOTORANTIM – METALLURGICAL SECTOR (2017)
 3 Tecnhical Opinions were elaborated by DEE.
1. Reviewed the unilateral and coordinated effects
of the transaction.
 Data requested to 13 companies about price,
quantity supplied, costs and margins in the markets
in which the firms overlap (from 2011 through 2016).
The companies sent data with the product
description and state destination.
 Softwares used: R and Excel.
 Panel data: 480,696 observations and 7 variables
(price, shippment+tax, state, data, product,
quantity and company).
 Conclusion: the transaction would have
considerable anticompetitve effects in eight
markets analysed.
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2. Analysis of the first remedy proposal concerning
assets divestiture: descriptive analysis of the
proposed remedy.
DEE´s conclusion: the remedy would work only in
specific scenarios, depending on the utilisation level of
installed capacity.
3. Analysis of the second remedy proposal, with a
different set of assets to be divested.
DEE´s conclusion: the remedy presented a significant
reduction for the pressure of price rise in all analysed
markets.
 Tribunal´s decision: approve the transaction upon
signing and fulfilling a Merger Control Agreement
(structural and behavioural remedy).

6. CASE:
ULTRAGÁS & LIQUIGÁS - DISTRIBUTOR COMPANIES OF LIQUEFIED
PETROLEUM GAS (LPG) (2017)
 3 Technical Opinions were elaborated by DEE:
1. Reviewed the definition of relevant market in the
transaction, the market competition level, and unilateral
and coordinated effects.
 Data requested to the National Agency of
Petroleum, Natural Gas and Biofuels (ANP) and to
17 players about quantity, price, costs and margin.
 Softwares used: R and Stata.
 Panel data: 654,813 observations for packaged
gas and 390,278 observations for in bulk gas.
 Monthly data from 2012 to 2016, by company, city
and product.
 DEE´s conclusion: the unilateral and coordinated
effects deriving from the merger would result in
competition concerns.
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2. Analysis of the first remedy proposed by the petitioners:
divestiture of assets.
3. Analysis of the second remedy proposed by the
petitioners: divestiture of assets.
Conclusion: The results showed that the proposed remedy
was not satisfactory to mitigate the competition concerns.
 Tribunal´s decision: disapproval of the transaction.

7. CASE:
IPIRANGA & ALESAT – DISTRIBUTION AND RESALE OF LIQUID FUEL - 2017
 2 Technical Opinions were elaborated by DEE:
1. Reviewed the unilateral and coordinated effects
deriving from the transaction.
 Data requested to companies and data from the
National Agency of Petroleum, Natural Gas and
Biofuels (ANP): price and quantity of the products
by resale (cities data) and distribuitor (states data)
– (2015 - monthly data)
 National indicators about population, GDP and car
fleet by cities.
 Panel data: approximately 64.000 observations.
 Softwares used: R and Stata.
 DEE´s conclusion: the results indicated that after this
merger there would be an incentive increase in the
Parallel Accommodating Conduct (PAC) price rise in
both markets.
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2. Analysis of the remedy proposed by the petitioners.
 The remedies presented would be ineffective and
difficult to monitor.
 Tribunal’s decision: blocking the transaction.

8. FINAL CONSIDERATIONS
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 DEE has a relevant role in the decision-making of the Brazilian competition authority.
 2015 – 2019:
DEE contributed in 50% of the transactions characterised as complex by the SG and
around 40% of the Tribunal decisions.
 Guide for a data request:
Best practices and standard of data.

9. THANK YOU!
DEE@CADE.GOV.BR
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