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Doing Business in Brazil - Looseleaf
Doing Business in Brazil - Electronic
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A. COMPETITION REGULATIONS IN BRAZIL
26.101 The main principles of economic system are laid down in articles
170 and 173 of the Constitution, as follows:
Article 170. – The purpose of the economic system, which is based
on the respect for human labor and on free enterprise, is
to assure everyone a measure of dignity in his existence
according to the dictates of social justice, with the
following principles being observed:
(…)
IV. – free competition;
V. – consumer protection;
(...)
Article 173. – Except as provided in this Constitution, the State may
engage directly in an economic activity only when
necessary because of imperatives of national security or
a vital collective interest, as defined by law.
(...)
Paragraph 4. – The law shall curb the abuse of economic power that is
directed toward domination of markets, elimination of competition, and the
arbitrary increase of profits.
26.102 It was based on such constitutional principles that ordinary
legislation dealing with competition defense, unfair competition and
violation of the economic policy was issued, covering both its criminal and
regulatory aspects.
26.103 In criminal terms, the main rules applying to competition are set out
in Law No. 8137 of December 27, 1990, which provides for crimes against
the economic policy, also covering tax crimes and crimes against consumers.
26.104 Regulatory and procedural aspects are governed by Law No. 8884
of June 11, 1994 (the Competition Law)1 which is currently the only law
that specifically embodies Brazilian competition legislation, as further
Pinheiro Neto - Advogados, established in 1942, is Brazil's leading commercial law firm with offices in Sao Paulo, Rio de Janeiro and Brasilia. The founding Editor of this publication, the late J.M. Pinheiro Neto, was the Legal Advisor to the British Chamber of Commerce in Brazil.