A PYMNTS Company

Brazil: CADE paralyzed as it waits for Bolsonaro

 |  September 12, 2019

Brazilian president Jair Bolsonaro has not filled key appointments to Brazil’s antitrust regulator (CADE), leaving the body in a state of paralysis, reported Bloomberg.

CADE, which has recently handled the Brazilian portion of high-profile mergers such as Walt Disney-Fox, was down to only three of its seven board members. In May, senior government ministers put forward names to fill in the vacancies. Early last month, Bolsonaro withdrew those appointees from Senate consideration without offering a public explanation, only to submit new suggestions a few days later.

According to Bloomberg, the reversal came right after the president announced a controversial plan to appoint his own son, Eduardo Bolsonaro, as Brazil’s ambassador to Washington, a diplomatic posting that also requires Senate approval. 

The new names suggested by Bolsonaro were agreed on with senior lawmakers, including Senate President Davi Alcolumbre, according to three members of the upper house and two ex-board members of CADE, who requested anonymity to speak freely. They accused the president of using the nominations as a bargaining chip to overcome opposition to his son’s nomination.

The debate over CADE has serious business implications. Without quorum to rule on major cases, over 70 mergers are currently on hold in Brazil, according to Bloomberg. 

Full Content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.