Technological Development as the Justification for the Approval of Mergers: What Can We Learn from the Totvs/Datasul Merger?

Abstract

Legally, the Brazilian antitrust authority (CADE) can approve mergers that substantially reduce competition if they foster technological development; however, this has never been done. In one specific merger, CADE only discussed how industrial policies could affect and develop the software sector. The paper suggests parameters for CADE’s analysis and approval of a merger justified by technological development, based on the legal provisions and the merger mentioned above.

Keywords: Competition law, Industrial policy, Technological development, Software, CADE

JEL Classification: K21, L52, O25