Antitrust Review of Mergers in Transition Economies: A Comment, with Some Lessons from Brazil

Abstract

William Kovacic's recent article, Merger Enforcement in Transition Economies, addresses important issues raised by the spread of antitrust worldwide following the collapse of the Soviet Union. Professor Page's comment on Kovacic expresses concerns that the fledgling antitrust regimes in countries with no tradition free markets will be unduly interventionist. To illustrate these concerns, the comment examines recent cases in which the Brazilian antitrust agency, CADE, blocked or imposed conditions on the approval of international acquisitions. In these instances, CADE?s economic analysis was questionable, particularly in light of the Brazil?s need for foreign investment.

JEL Classification: L44