MAR 26 DE NOVIEMBRE DE 2024 - 08:58hs.
Involving Caixa and Febralot

Cade's General Superintendence opens investigation on violations in Brazil’s lottery market

The General Superintendence of the Administrative Council for Economic Defense (SG/Cade) launched, this Wednesday (16th), an administrative inquiry to investigate violations of the economic order in the lottery games market involving Caixa Econômica Federal (CEF) and Brazilian Federation of Lottery Companies (Febralot).

The investigation started from a representation sent to SG/Cade by the Association of Digital Lottery Games Intermediaries (Aidiglot).

The entity alleges that Caixa, holder of a dominant position and regulatory power over activities related to lottery games, would be abusing this to prevent lotteries from maintaining a commercial relationship with online intermediation platforms.

In addition, according to the Association, Caixa and Febralot would have promoted "defamatory" campaigns against online intermediation platforms in order to make their activities unfeasible.

With the objective of guaranteeing the maintenance of the competitive environment in the online lottery game intermediation market while conducting the investigation, the SG/Cade imposed a preventive measure ordering Caixa to refrain from applying sanctions to lottery units for mere commercial relationship with platforms online intermediation.

The measure also obliges the financial institution to refrain from expressing itself publicly in such a way as to attribute or suggest an illegal character to the economic activity carried out by the platforms, removing from its website the communications contrary to the platforms already published, in addition to disclosing the entire content of the Cade's decision.

A similar determination was also addressed to Febralot, especially with regard to the removal of notices in this regard from its portal.

Access Administrative Inquiry No. 08700.003430/2023-01.

Source: CADE