By Brazil Stock Guide – Brazil’s antitrust authority, the Administrative Council for Economic Defense (Cade), has rejected a request by China’s Cosco Shipping Holdings Co. (1919.HK) to weigh in on rules governing the participation of shipping lines in the Tecon Santos 10 terminal auction.
The decision was issued by Cade’s General Superintendence, which concluded that the request did not qualify as a formal antitrust review but rather as an advocacy measure — a function that cannot be triggered directly by private entities.
Cosco, which operates both vessels and port terminals, had filed the request in January, arguing that the auction model for the planned container megaterminal at the Port of Santos imposed competitive restrictions. The company specifically challenged limits on the participation of shipping lines.
According to the Chinese state-owned group, recommendations from Brazil’s Federal Court of Accounts (TCU) led to the inclusion of restrictive clauses without sufficient technical backing from the country’s competition framework. Cosco described the measures as “disproportionate and potentially restrictive to broad competitiveness in the bidding process.”
The company sought a reaffirmation from Cade that vertical integration is not inherently illegal under antitrust rules and argued that restrictions on shipping lines were unnecessary.
Cade, however, determined that the request was not aimed at assessing compliance with competition law but rather at influencing regulatory policy. In a technical note, the authority stated: “Unlike a technical request, which requires an objective analysis of compliance with the law, advocacy has a propositional and persuasive character, with the primary objective of modifying guidelines, interpretations or policies in favor of social and economic interests.”
The watchdog emphasized that advocacy actions are carried out on its own initiative when sufficient grounds are identified, which it said was not the case in this instance. As a result, there was no legal basis to open administrative proceedings or adopt further measures.
Cade also noted that it has already reviewed the concession model for Tecon Santos 10, clarifying that there is no obligation to notify a concentration act. The authority added that defining competitive rules for the auction falls under the jurisdiction of the TCU and Brazil’s National Waterway Transport Agency (Antaq).
While Cade said it found no competition-based justification to restrict the participation of shipping lines, it reiterated that final auction rules remain the responsibility of the relevant regulatory bodies.
The authority concluded that no new elements had emerged to warrant a fresh review, stating that previously identified competition concerns had already been addressed in a prior technical note.