Failing firm theory and it’s application in Brazil

Abstract

Competition Law is the branch through which the government uses mechanisms for the promotion of consumer welfare, aiming at the promotion of human dignity, and the development of the economy. These are the foundations of the Brazilian Competition Defense System ("SBDC") and the Administrative Council for Economic Defense ("CADE"). Among the various principles provided for in the Constitution of the Republic, free competition and preservation of the company stand out in this book. In the event of conflict between them, the best solution must be found in the concrete case, focusing on the social development of the country, the promotion of human dignity and the achievement of social justice. This book proposes the concretization of important values that concern the Democratic State of Law, with emphasis on the preservation of the company and the protection of free competition. It is known that the Failing Firm Theory is little discussed in Brazil, and the cases in which CADE has analyzed the theme are rare. It will be analyzed that not just any crisis legitimizes its application, besides previously established criteria, it must be analyzed through the weighting method.