Home sci-tech Cade Superintendence suggests $ 60m fine against IBM for irregularity …

bannerebay

Cade Superintendence suggests $ 60m fine against IBM for irregularity …

by ace
How celebrities will help Uber expand with virtual restaurants

The Superintendency of the Administrative Council for Economic Defense (Cade) proposed to impose a maximum fine of 60 million reais on IBM after the US company completed the acquisition of Linux software maker Red Hat before the approval of the antitrust agency in Brazil. .

The worldwide operation was notified to Cade in April. In late June, the agency issued an opinion for the approval of the operation, without restrictions, but did not formalize the decision.

On July 9, when the case was pending judgment by Cade, IBM announced the conclusion of the deal worldwide, prompting Cade to file an administrative proceeding to investigate breach of law that requires companies to maintain physical and financial structures. unchanged competitive conditions until the final assessment of the municipality. The violation of this law is called "gun jumping".

IBM claimed that Cade's board was incomplete and that waiting for the collegiate board to rebuild could damage the deal. It therefore decided to establish separate management for Red Hat until the case was finally dealt with by the regulator.

These arguments, however, did not convince Cade's superintendence, which decided to maintain the suggested fine.

"Despite the arguments presented by the claimants, there was the consummation of the merger notified herewith without the approval of this municipality (…), which is still characterized the practice of gun jumping," said the superintendence.

IBM representatives could not be reached immediately for comment.

bannerebay

Related Articles

Leave a Comment

twelve + eight =

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More