By Brazil Stock Guide – Brazil’s antitrust watchdog is scrutinizing the creation of two football leagues, raising concerns about possible breaches of competition law. The Superintendence-General of the Administrative Council for Economic Defense (SG/Cade) said Wednesday that the formation of Liga Forte União do Futebol Brasileiro (LFU) and Liga do Futebol Brasileiro (Libra) shows signs of gun jumping. The agency released the statement on its official website.
Gun jumping occurs when companies implement a merger or joint venture before receiving clearance from the antitrust authority. Cade said LFU and Libra, both joint ventures formed by competing clubs, should have been notified under Law No. 12.529/2011 before operations began.
The leagues consolidate key economic assets such as broadcasting rights, effectively coordinating strategies and sharing sensitive information among rivals. Under Brazilian competition rules, joint ventures involving companies with revenues above 750 million reais and 75 million reais in the preceding fiscal year must be pre-notified to Cade.
Cade emphasized that this initial review only determines whether the agreements should have been formally notified. The competitive effects of each entity will be analyzed later in separate proceedings, once the notification is filed.
The case will now be assigned to a reporting commissioner, who may decide either to dismiss the probe or confirm an infringement of economic order, applying penalties under the law.
LFU, created in June 2022, represents its member clubs in negotiations over broadcasting rights for Brazil’s top two football divisions. Libra, established in May 2022, was formed to enhance the commercial value of the Brazilian Championship by collectively organizing media and sponsorship rights.