On November 17, 2022, a new statute was enacted introducing crucial modifications to the Brazilian Competition Act, changes that foster antitrust damages lawsuits (Law No. 14.470/2022).
The innovations introduce the concept of double damages as the standard compensation for victims of cartel activity. The statute also provides an exception for defendants that cooperate with the Brazilian Antitrust Authority (CADE)—whether they ask for immunity at the onset of the case or settle with the government in the course of the case—shielding them from double damages awards and from joint and several liability in the payment of these claims.
The new statute also changes the rule on statute of limitations in damages lawsuits, as well as making other procedural changes. It also gives greater weight in court to the CADE decision that cartel conduct exists.
All changes are summarized in the chart below:
The innovations above increase exposure to antitrust violations by encouraging allegedly injured parties to seek compensation in Brazilian courts. This bill was certainly designed to make antitrust damages claims more common, further raising the stakes of non-compliance with the Brazilian Competition Law.