- 6 November 2025
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CADE Opens the Floor: Public Hearings as a New Tool to Deepen the Competition Debate
A landmark public hearing held by CADE on October 17 sparked the debate on the merger between Petz and Cobasi. The event brought together several stakeholders – company executives, competitors, public agents, NGOs, as well as representatives of civil society and the federal government. The Reporting Commissioner, José Levi, highlighted the unprecedented nature of the initiative in the context of a merger case, while the Tribunal continues to examine the case, conducting market tests and studies through the the Department of Economic Studies, complementing the work carried out by CADE’s General Superintendence, which recommended the unconditional clearance of the Transaction.
For CADE, the event was considered useful to reinforce transparency and social participation, enhancing the legitimacy of CADE’s decision-making process through the joint hearing of several interested stakeholders. In practice, supporters of the merger used the opportunity to emphasize that Brazil’s pet retail market is highly fragmented, pointed to a “multichannel” consumer base and highlighted the competitive pressure that large chains face from marketplaces (which empower small retailers), neighbourhood pet shops, ‘agrostores’ and supermarkets. Opponents to the deal argued that there is significant market concentration when considering only large chains, that Petz and Cobasi are close rivals, and that their combination would raise barriers to entry.
The case remains pending a final decision by CADE’s Tribunal. According to the Reporting Commissioner, the authority seeks to obtain a “complete picture” before reaching a decision.
Consolidating a new standard of regulatory dialogue, CADE has already announced another public hearing, this time in the liquid fuels sector, scheduled for November 13. In this instance, the event is not related to a merger review. According to CADE, the initiative is driven by the need to deepen the assessment of potential barriers to competition in this market, which is considered strategic for the Brazilian economy and for consumer welfare. The holding of a public hearing in the Petz/Cobasi case may signal a new trend at CADE, which until now had never convened this type of debate in a merger still under review.
This content is part of the Monthly Competition and Antitrust Bulletin. Also check the other highlights of the month: A New Tool to Deepen the Competition Debate, CADE Launches First Investigation into Online Betting Platforms, CADE Investigates Gun-Jumping in the Formation of Soccer Leagues, CADE Reviews Fine Imposed on Rumo and Reinforces Its Stance on Proportionality in Unilateral Conduct, CADE Changes Its Stance on Codeshare Agreements and Orders Notification and Brazilian Government Proposes New Competition Regulation for Digital Platforms.
