The Law amended the Brazilian Competition (Law no. 12.529/11), bringing guidelines for remedial actions for violations to the economic order.
Published on 11/17/2022, Law 14,470 brought amendments to the Brazilian Competition Act (Law 12,529/11). The legislative change aimed to clarify and strengthen the lawsuits to repair the damage caused by violations to the economic order.
Among the changes brought by the law are:
Right to double damages as indeminity for losses suffered due to cartel;
Definition of a five-year statute of limitations for filing actions for damages;
The possibility of granting injunctive relief only based on CADE's final decision;
Encouragement of participation in leniency programs and conduct termination agreements, since the signatories of these instruments will not have joint and several liability for the damages caused by the other participants in the infringing conduct.
The law strengthens the fight against violations to the economic order, besides establishing clear procedural guidelines for obtaining compensation for damages caused by such conducts.
We bring below a translation of this new law into English. You can also access a collateral version, with text in Portuguese and its translation side by side here.
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LAW No. 14.470, OF NOVEMBER 16, 2022
This law amends Law No. 12,529, of November 30, 2011 (Brazilian Competition Act), to establish new provisions applicable to repress violations of the economic order.
THE PRESIDENT OF THE REPUBLIC, I hereby make known that the National Congress decrees and I enact the following Law:
Art. 1 Law No. 12,529, of November 30, 2011 (Brazilian Competition Act), shall be amended with the following provisions:
“Art. 47.
§ 1 The aggrieved parties shall be entitled to double compensation for the losses suffered due to violations of the economic order established in items I and II of § 3 of Art. 36 of this Law, without prejudice to the application of administrative and criminal sanctions.
§ 2 The provisions of § 1 of this Article do not apply to co-authors of violation of the economic order who have entered into a leniency agreement or signed cease-and-desist commitments, compliance with which has been attested by Cade. These parties will only be responsible for the damages caused to the aggrieved parties.
§ 3 The signatories of the leniency agreement and the cease-and-desist commitments are responsible only for the damage they have caused to the injured parties. They do not have joint and several liability for the damages caused by the other authors of the violation of the economic order.
§ 4 The passing on of overpricing is not presumed in the cases of the violations of the economic order established in items I and II of § 3 of art. 36 of this Law, and proving it is incumbent upon the defendant that alleges it." (NR)
Art. 2 Law No. 12,529, of November 30, 2011 (Brazilian Competition Act), is amended by the addition of the following articles 46-A and 47-A respectively added to Chapters IV and V of Title V:
“Art. 46-A. When the action for damages is based on the right established in art. 47 of this Law, the limitation period will not run during the administrative inquiry or administrative proceeding being processed by the Brazilian Antitrust Authority (CADE).
§ 1 The action for damages must be filed within 5 (five) years of the alleged infractions to the economic order established in art. 36 of this Law, starting from the unequivocal knowledge of the antitrust violation.
§ 2 The unequivocal knowledge of the violation is defined by the date of publication of the final judgment of the administrative proceeding by the Brazilian Antitrust Authority (CADE)."
“Art. 47-A. The decision of the Plenary of the Tribunal described in Art. 93 of this Law may substantiate the granting of relief on the basis of prima facie evidence, allowing the judge to preliminarily decide on the actions provided for in Art. 47 of this Law.
Art. 3 This Law becomes effective as of its publication date.
Brasília, November 16, 2022; 201st from Independence and 134th from Republic.
JAIR MESSIAS BOLSONARO
Anderson Gustavo Torres
This text does not replace the one published in the Official Gazette on 11/17/2022
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