Abstract
This paper explores the potential effects of European competition lawâs extraterritoriality over Brazil, providing a Brazilian perspective of the phenomenon of the European Unionâs growing regulatory power. This phenomenon can be approached from different angles, having this paper focused on (a) analyzing whether the Brazilian competition authority (CADE) operates under a European soft law and (b) identifying potential effects of EU extraterritoriality over the Brazilian market as a developing country. Thus, this paper first identifies whether European extraterritoriality can affect Brazil overall, based on international trade statistics and on the criterion of qualified effects, and, then, it explains how this could occur, without defining these effects as either positive or negative. Despite some legal uncertainty on the EU criteria of extraterritoriality, this paper asserts that it can affect Brazil, through an expected increase of common-jurisdiction cases. As to how it could affect Brazil, despite the European inspiration for the 2011 Brazilian legislative reform and CADEâs international agenda, CADEâs case law indicates that a European soft law is limited in Brazil, as both jurisdictions have been developing their respective competition policies in a relatively autonomous way. Considering these differences and the proximity through the EU-Mercosur trade agreement, one should expect closer dialogue between CADE and the Commission, challenges of harmonizing competition policies, and demand for Brazilian market players to increasingly consider European competition policy into their risk analysis.
Published Version
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