Brazil: Regulator urges criminal charges against State owned postal service

Brazilian competition regulator CADE has recommended that criminal charges be filed against the Brazilian state-owned Postal and Telegraph company ECT, including the arrest of its legal representatives, due to their use of “Sham Litigation”. The call comes during an investigation into possible anticompetitive activities in the country’s domestic express courier market.

The concept of sham litigation is defined as the abuse of one’s right to petition or denounce before the courts for anti-competitive purposes. It is a form of predatory litigation, used when economic agents resort to unjustified legal and / or administrative actions in order to harm their competitors.

In the case of Correos, CADE analyzed two separate groups of claims, consisting of individual claims for distinctive cases that do not appear justified. In total, ECT would have filed more than 281 different legal recourses, causing direct and indirect damages to competitors, both in monetary terms and in lost reputation, generating legal uncertainty and affecting investments.

Fuente: Jota

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