Spaces and interfaces between regulation and competition: the approach of CADE

Abstract

This paper discusses CADE’s approach towards competition spaces comprised in regulated industries. Two approaches can be distinguished: (i) activities in creating competition spaces (i.e., fostering competition in industries where it is non-existent); and (ii) protection of competition spaces opened by industry regulation (i.e., prevention and enforcement against antitrust violation in competition spaces within regulated markets). It is argued that under the situations where such spaces have not been established by the legislator, CADE enforces competition law in a cautious way, evaluating the compatibility of the regulatory policy with competition law but, as the final outcome, only requesting or asking regulatory authorities to adopt the needed provisions for enforcing competition law. However, considering competition spaces expressly opened by legislation or regulation, or else when duly acknowledged the application of competition law in the regulated industry, CADE has fully exerted its tasks in competition adjudication, in a clear leadership position in relation to regulatory authorities.