The AmBev Decision and the Regulation of Economic Power in Brazil: At a Crossroads between the US and the EU Competition Law Models

Abstract

In July 2009, AmBev was condemned in a unanimous decision by the Brazilian competition authority. The conduct in question concerned AmBev's loyalty scheme, which consisted of giving discounts to retailers with the effect of increasing barriers to entry. AmBev, which is the biggest beer manufacturer in South America and part of the multinational Anheuser-Busch InBev group, emerged from a controversial merger between Brahma and Antarctica approved by the competition authority in 1999. In the recent decision, AmBev received the highest fine ever imposed for an abuse of dominance offence in Brazil. The Brazilian competition law and policy has been shaped by both US and EU competition law and case law. This article seeks to convey the relevance and complexities of the ongoing developments and evolution of Brazilian competition law and policy, as well as the regulation of economic power. In this respect, the landmark AmBev decision is relevant as it suggests a departure from the US model and an approximation towards the EU model.