Brazil antitrust chief signals tougher scrutiny of Big Tech power

Interim CADE president says innovation remains welcome but growing concerns over digital platforms’ market dominance justify stronger oversight

 

 

 

 

The new interim president of Brazil’s antitrust watchdog, the Administrative Council for Economic Defense (CADE), Diogo Thomson, has witnessed cartels evolve from arrangements coordinated through emails to practices involving algorithms. Elevated to the agency’s top position as the most senior member of CADE’s tribunal, Thomson is also a long-serving official at the institution, where he first worked as a federal prosecutor in 2007. He later served as deputy superintendent for ten years and as acting superintendent-general in 2017 and again between 2021 and 2022.

As president, Thomson has played a significant role in recent cases involving big tech companies and artificial intelligence, working in parallel with international antitrust authorities. In recent decisions, the agency required notification of transactions involving major technology companies and artificial intelligence firms for closer review. It opened an investigation into the use of news content by an AI tool.

Through June, Thomson said his focus will be on reforming CADE’s internal rules and on the proposed “Big Tech Bill.” Fast-tracked in the Lower House, Bill 4,675/2025 focuses on competition rules and market power and could significantly expand CADE’s authority. While waiting for the legislation, the regulator intends to address big tech issues using its existing powers, he told Valor. Below are excerpts from the interview.

Presidency

Being in an interim role creates the challenge of not knowing how long it will last. My advantage is that I have been here for a long time and know the institution well. The idea is to work in stages. Right now, we are dealing with what is urgent. We have a short-term plan through June. Then, because there will be the World Cup and elections, we have a second phase from June until the elections. After that, we need to understand what the government will look like and what the prospects are. For now, the idea is to address urgent matters and then see what is possible.

Priorities

Some issues have been on the agenda for some time, such as reforms to our internal rules, many of which are requested by companies and lawyers. One issue is a priority, though not necessarily urgent because it does not depend on us: the report on Bill 4,675 of 2025, which deals with digital markets and grants new powers to CADE. Because the bill is under an expedited legislative process, the rapporteur has until June to present a report. We will do everything within CADE’s reach to contribute to that process.

Big Tech Bill

There are challenges associated with the new responsibilities. If the bill passes, CADE will need a period of adaptation. The model envisions a new structure, and internally we can prepare the agency administratively within our capabilities. That includes rethinking our departments’ structure and working with the Ministry of Management to hire additional staff. CADE already has institutional expertise dedicated to studying digital markets, which can be put to good use once the bill is approved.

Revenue thresholds

Updating revenue thresholds is a longstanding request from companies, since they have never been adjusted. Inflation alone has created a significant gap relative to the current mandatory notification thresholds for merger filings [currently transactions involving one company with annual gross revenue of at least R$750 million and another with at least R$75 million]. Updating these thresholds would reduce the number of filings and improve efficiency. Both the Finance Ministry and the Justice Ministry have been paying close attention to this issue. We have been working with them on the best way to make the adjustment, which cannot be limited to notification thresholds alone. It must also include procedural fees, because CADE’s budget depends heavily on them.

Quorum

We need a quorum of four commissioners to open a hearing and three to issue rulings. My recusals—stemming from cases I worked on while serving in CADE’s technical staff before joining the tribunal—are becoming increasingly rare. I still have recusals involving some very old cartel cases that have been in the Superintendent-General’s Office for a long time. There are also some older cases related to the anti-corruption task force Car Wash, though not all of them. A reduced tribunal creates other challenges, particularly because commissioners don’t work with large teams. One of our short-term priorities is strengthening those teams. We also want to better organize hearing agendas so we can decide multiple cases at once. We recently did that with cases involving acquisitions of artificial intelligence companies by big tech firms.

Big tech companies

Our idea is to deal with big tech using the tools we already have to address problematic conduct. We are not enemies of innovation. On the contrary, we recognize that many of these companies bring innovative products. But there is concern about the power these companies hold, especially when they prevent new entrants or reduce user choice. That is one reason there is a legislative initiative to give CADE more authority. In the meantime, we will act within the scope of what we can assess under existing conduct investigations, just as we would in any other market.

Labor market

There is more than one case under review by the Superintendent-General’s Office that involves possible coordination in labor markets. Antitrust law has always dealt with these issues in some way. Labor is a cost and an input. If it is affected by anticompetitive conduct, it must be investigated. These cases involve different situations, from wage-fixing arrangements—which are equivalent to cartels because they fix an economic variable—to harder-to-prove cases, such as information exchanges that may affect labor markets. If companies coordinate or share information, they can exert pressure on workers, and the result may be lower wages. Another serious practice is agreeing not to hire competitors’ employees. That also reduces competition in labor markets. Our analysis does not focus on employment relationships. It focuses on the impact anticompetitive conduct can have on labor as an economic input.

Fuel market

The issue involving gas stations is closely related to the structure of Brazil’s fuel market. The retail segment is where competition is almost entirely free of regulation, which is why so many cases arise there. Fuel is also a homogeneous product, meaning prices tend to be very similar, which naturally creates suspicions of cartel behavior.

Aviation

CADE recently approved the deal between Azul and United Airlines, while the transaction between Azul and American Airlines remains under review by the Superintendent-General’s Office. In the case of United, there was a smaller ownership stake in Azul, making it less problematic from a competition perspective. In the case of American, a more careful analysis may be necessary regarding this type of cross-shareholding.

Master and BRB

The transaction involving Banco Master and Banco de Brasília (BRB) was reviewed by the Superintendent-General’s Office long before the issue became widely publicized. It followed the normal merger-review process. The banking market, particularly among smaller banks, generally does not present major competition concerns. From a competition standpoint, there were no significant issues. The Central Bank examined the broader systemic-risk concerns and reached its own conclusions. At CADE, the case never even reached the tribunal.

*By Beatriz Olivon — Brasília

Source: Valor International

https://valorinternational.globo.com/

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U.S. to label Brazil’s PCC, CV as terrorist groups

Designation raises concerns in Brasília over possible U.S. interference and implications for banks and companies

The U.S. government said Thursday (28) that it will designate the criminal factions Comando Vermelho (CV, or Red Command) and Primeiro Comando da Capital (PCC, or First Capital Command) as Specially Designated Global Terrorists (SDGTs). The U.S. State Department said the designation will take effect on June 5.

The announcement came two days after Senator Flávio Bolsonaro (Liberal Party, Rio de Janeiro), a presidential hopeful, visited U.S. President Donald Trump in Washington, D.C.. After leaving the meeting, Flávio said he had urged the U.S. government to classify the factions as foreign terrorist organizations. Shortly after the statement was released, the senator noted the decision on social media and wrote: “Great day,” the same expression used by his father, former President Jair Bolsonaro (Liberal Party).

The measure follows Trump’s earlier designation of several criminal groups from Mexico and other countries as terrorist organizations.

The Brazilian government is concerned about the move. It fears the designation could open the door to U.S. interference on Brazilian soil.

Celso Amorim, President Luiz Inácio Lula da Silva’s special adviser for international affairs, told G1 on Thursday night that organized crime must be fought, but security is a national matter: “Public security is a fundamental issue for socioeconomic development. Organized crime is an evil that must be fought. International cooperation is welcome, especially on issues such as money laundering and arms smuggling. A pretext for intervention is unacceptable,” Amorim said.

President Lula visited the White House earlier this month in an effort to prevent what Brazil sees as a counterproductive measure that would pose risks both to its financial system and to its sovereignty. Instead, the Brazilian president sought to persuade Trump to deepen U.S. cooperation with his government’s efforts to fight groups such as the PCC, targeting money-laundering operations and smuggling networks.

‘Regional threat’

In the statement, U.S. Secretary of State Marco Rubio said the PCC and CV are two of Brazil’s most violent organizations and that, together, they “command thousands of members and orchestrate brutal attacks” against civilians, police officers, and authorities. “Their influence and illicit networks extend far beyond Brazil’s borders, across our region and into our country,” the statement said.

Rubio said the Trump administration will use all available tools to safeguard U.S. security interests and disrupt “the revenue streams funding violent narco-terrorists.” “Today’s action taken by the State Department further demonstrates the Trump Administration’s unwavering commitment to dismantling cartels and criminal organizations in our region and ensuring the safety of the American people. ”

The U.S. measure is also expected to create uncertainty across the financial and economic system as banks and other companies seek to understand its implications. Last year, the U.S. targeted three Mexican banks over possible money laundering tied to drug trafficking, effectively cutting them off from the U.S. financial system. In recent years, Brazilian authorities have said they found evidence that the PCC launders money through fintechs.

(With Bloomberg)

By Lilian Venturini — São Paulo

Source: Valor International

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Government likely to unveil diesel subsidy next week

Finance minister told Valor subsidy could reach R$0.35 per liter, depending on oil price fluctuations in coming days

Finance Minister Dario Durigan said on Wednesday (27) in an exclusive interview with Valor that he is working under the assumption that the government will subsidize diesel next week, as the current exemption on federal fuel taxes is set to expire on Sunday (31). He said the subsidy could reach R$0.35 per liter, depending on fluctuations in Brent crude prices over the coming days.

“Today, I am working with the idea of maintaining the current subsidy at R$0.35, but that still needs to be assessed,” he said. “Every day matters because [Brent prices] have been highly volatile, and we need to calibrate the measure, including to protect fiscal accounts,” he added.

The diesel subsidy will be necessary because the complementary bill that would allow the government to grant tax exemptions on fuels has not yet been approved by Congress.

Durigan stressed that the government will not use the additional revenue generated by oil prices to improve fiscal results. The goal, he said, is to mitigate the effects of the war on the population and economic sectors.

“My role here is not just about fiscal policy. Of course, that is my primary role—to take care of the country’s fiscal situation—but not only that. I also need to ensure the country appears in the UNDP [United Nations Development Programme] report, as happened yesterday [Tuesday] for the first time, reaching the level of very high human development, which involves longevity, education, and income.”

On Monday, the UNDP announced that Brazil had reached the category of very high human development for the first time in history, with an index of 0.805 in 2024.

In the interview with Valor, the minister also said the Finance Ministry is working on a proposal to raise the revenue ceiling for qualification as an Individual Microentrepreneur (MEI), in line with an agreement reached between the federal government and the Chamber of Deputies. The adjustment would apply only to MEIs, not to companies under the Simples Nacional tax regime. As a result, the fiscal impact would remain below R$10 billion, according to Durigan.

“We will implement this [increase in the MEI ceiling] gradually. I still don’t know whether it will happen in 2027 or 2028, but probably along those lines,” he said. Currently, the annual revenue ceiling for MEIs is R$81,000.

According to the minister, the proposal would also allow MEIs to hire two employees instead of only one, as currently permitted. In addition, he said he would like to use the bill to correct other distortions, such as requiring small companies that hire more than five MEIs to contribute to the social security system.

“It’s something I can take to Speaker Hugo,” he said, referring to Brazil’s Lower House speaker, Hugo Motta.

The bill currently under discussion in the Chamber, already approved by the Senate, is broader and includes adjustments for individual microentrepreneurs, microenterprises, and small businesses. According to estimates by the economic team, the proposal would have a fiscal impact of R$48.5 billion in 2027 and R$53.7 billion in 2028.

*By Jéssica Sant’Ana, Lu Aiko Otta And Giordanna Neves — Brasília

Source: Valor International

https://valorinternational.globo.com/

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Seguro-garantia com cláusula de cancelamento não substitui depósito recursal

A apresentação de seguro-garantia judicial em substituição ao depósito recursal exige o cumprimento de requisitos rígidos. A existência de cláusula de desobrigação ou rescisão na apólice invalida o documento, o que resulta na deserção do recurso por falta de garantia do juízo.

 

 

 

27 de maio de 2026

 

Com base nesse entendimento, a 3ª Turma do Tribunal Superior do Trabalho negou o andamento do recurso de uma empresa da Companhia Energética de São Paulo (Cesp), uma antiga estatal de energia, devido à invalidade da apólice apresentada para garantir uma execução trabalhista. A decisão foi unânime.

atestado documento contrato papel adulterado rasgado rasurado inválido

Para TST, apólice com cláusula de desobrigação não substitui depósito recursal

O caso concreto envolve uma reclamação trabalhista ajuizada por um ex-funcionário contra a companhia. Durante a fase recursal, ao tentar levar o processo à corte superior por meio de um recurso de revista, a empresa optou por substituir o depósito exigido por lei por uma apólice de seguro-garantia judicial. Contudo, o documento apresentado continha uma cláusula (item 4.1) que previa hipóteses de desobrigação.

Diante da irregularidade, o Tribunal Regional do Trabalho da 15ª Região (interior de São Paulo) barrou o recurso, declarando-o deserto — ou seja, sem o devido pagamento do preparo. Inconformada, a empregadora recorreu ao TST por meio de agravo de instrumento.

A companhia argumentou que a apólice não infringia as regras, alegando que não havia previsão de rescisão por iniciativa do tomador, mas apenas situações de perda de direito relacionadas a fraudes. A recorrente pediu a aceitação do documento, afirmando que a rejeição violaria o seu direito constitucional ao contraditório e à ampla defesa.

Ao analisar o agravo, o relator do caso, ministro Mauricio Godinho Delgado, rejeitou os argumentos da empresa. O magistrado explicou que a substituição do depósito por seguro é permitida pela CLT, mas demanda a estrita observância do Ato Conjunto TST.CSJT.CGJT 1/2019.

O julgador ressaltou que o parágrafo 1º do artigo 3º da referida norma proíbe expressamente que o contrato contenha qualquer cláusula de desobrigação ou que permita a rescisão, ainda que de forma bilateral. O ministro atestou que a inobservância dessa regra equivale à ausência de depósito recursal, o que atrai a Súmula 245 do TST e gera a deserção imediata.

“Dessa forma, a Corte Regional não conheceu do recurso de revista interposto pela Reclamada, porque deserto, em obediência ao disposto no artigo 6º, item II, do mesmo Ato Conjunto”, apontou o ministro.

O relator também rebateu a alegação da empresa de que a apólice continha um subitem anulando a desobrigação. Ele demonstrou que o documento listava situações que, se ocorressem, extinguiriam a garantia, o que inviabiliza a segurança financeira exigida no processo.

“Nesse contexto, destaca-se que a garantia do Juízo deve ser concreta e efetiva, sendo, assim, incompatível com a documentação apresentada, motivo pelo qual não há como se afastar a deserção imposta ao recurso de revista da recorrente”, concluiu.


AgAIRR 0010215-34.2022.5.15.0127

Com informações da assessoria de imprensa do TST.

Fonte: Conjur

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Parte não tem direito a segundo pedido escrito de esclarecimentos ao perito

A parte não tem o direito de fazer um segundo pedido escrito de esclarecimentos ao perito após a modificação do laudo em resposta ao primeiro pedido, conforme o entendimento firmado pela 3ª Turma do Superior Tribunal de Justiça. O colegiado ressaltou, contudo, que a parte pode solicitar ao juízo a intimação do perito para comparecer à audiência de instrução e julgamento.

 

 

 

 

27 de maio de 2026

 

 

Magnific

laudo pericial contrato cláusula

Para o STJ, parte não tem direito de fazer segundo pedido de esclarecimentos

Na liquidação de sentença que deu origem ao recurso julgado pela turma, após o primeiro pedido de esclarecimentos da parte, a perita judicial apresentou novos cálculos, nos quais o valor da execução foi reduzido em ao menos R$ 8 milhões.

Devido à divergência dos valores apresentados no primeiro e no segundo laudos, a parte apresentou novo requerimento de esclarecimentos por escrito. O juízo, entretanto, indeferiu o pedido e determinou o envio dos cálculos periciais à contadoria judicial. O Tribunal de Justiça do Amazonas manteve o indeferimento.

No recurso especial ao STJ, a parte insistiu no direito de impugnar o que considera um novo laudo pericial, pois, após os primeiros esclarecimentos, a perita teria modificado completamente a metodologia de cálculo e, portanto, o resultado final. E sustentou que o indeferimento do segundo pedido violou os princípios do contraditório e da ampla defesa.

Perito na audiência

Relatora do recurso, a ministra Nancy Andrighi explicou que, apresentado o laudo pericial, a parte tem o direito de formular um pedido escrito de esclarecimentos ao perito. A magistrada disse também que, se a resposta ainda deixar dúvidas sobre o laudo, a parte deverá utilizar a previsão do artigo 477, parágrafo 3º, do Código de Processo Civil (CPC) e solicitar a intimação do perito para que compareça à audiência de instrução e julgamento.

“O sistema processual, ao exigir a audiência para a segunda rodada de esclarecimentos, visa justamente coibir essa litigância repetitiva e garantir a celeridade”, afirmou a relatora.

No caso julgado, de acordo com a ministra, como a parte se limitou a formular novos quesitos por petição escrita, sem pedir a intimação do perito para a audiência, o indeferimento foi legítimo e não configurou violação ao contraditório ou à ampla defesa.

Discricionariedade do julgador

Nancy Andrighi salientou ainda que a parte também pode requerer a verificação de erro material de cálculo (artigo 494, inciso I, do CPC) ou, se a matéria ainda não estiver suficientemente esclarecida, uma nova perícia (artigo 480 do CPC), providências que estão sujeitas à discricionariedade do julgador — que, como destinatário da prova e condutor do processo, tem o poder de indeferir medidas consideradas protelatórias, conforme o artigo 370 do CPC.

“Tais faculdades podem ser exercidas ex officio, mas não configuram obrigações impositivas ao julgador, que avalia sua necessidade à luz da busca pela verdade processual e da utilidade da prova”, concluiu a ministra. Com informações da assessoria de imprensa do STJ.

REsp 2.197.447

Fonte: STJ

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Black professionals make up 13.4% of lawyers at Brazil’s largest firms

This figure comes from the latest census by the Legal Alliance for Racial Equity, slated for release on Thursday (21)

 

 

The proportion of Black professionals at Brazil’s largest law firms has increased over the past eight years. From a virtually nonexistent share in 2018, it rose to 11.3% in 2021 and reached 13.4% in 2025, according to data from the latest census by the Legal Alliance for Racial Equity, to be released today.

The Alliance currently brings together 14 law firms. The census, however, was conducted at 10 of them, covering a total of 7,486 employees in legal and administrative departments. Because participation is voluntary, about 54% of workers responded to the survey. The results showed progress, but there is still room for improvement, according to specialists.

Created in 2017, the Alliance brings together firms that have already implemented inclusion and retention programs focused on racial diversity. The initiatives include strategies to increase the hiring of Black candidates, offer training programs, and improve the retention and promotion of professionals.

This year, the Alliance is being chaired by a Black lawyer for the first time. Robson de Oliveira, a partner at Demarest Advogados, says that after an initial phase of awareness-raising and a focus on hiring, the plan for the coming years is to find ways to increase the retention of Black talent at law firms.

“The survey is a diagnosis that helped us realize that talent retention is one of the biggest bottlenecks for expanding diversity. Although some turnover is normal and even desirable, as firms train professionals, they begin to draw more attention from the market,” he says.

Among the training activities, the law firms that are part of the Alliance offer, for example, English courses and mentoring, helping prepare résumés that highlight experience and offering guidance on networking, among other topics. “Many times, the professionals served are the first generation with a college degree, so they don’t have family guidance on these things,” says Robson de Oliveira.

Barbara Rosenberg, a partner at BMA and an Alliance adviser, adds that the Quota Law (Law 12711 of 2012) helped Black students gain the opportunity to stand out academically, but the next step was still missing. “The greatest difficulty was getting these excellent students, from excellent universities, to Faria Lima,” she says.

And when Black students and recent graduates arrive at large law firms, they bring skills and abilities that set them apart from other candidates, according to Renata Scuba, of Mattos Filho. “Behavioral skills, commitment, resilience, and a drive that is hard to see in those who already come from a background full of opportunities,” she says.

According to her, this is also why it is so important to ensure racial literacy within law firms, alongside professional training, so that leaders in decision-making positions recognize these differentiators. Robson de Oliveira agrees: “We need to accelerate change from the top down.”

As for the next challenges, the lawyer adds, the greatest will be not losing the ground already gained—in addition to advancing in hiring and retaining professionals. The presence of Black professionals in director-level positions, for example, rose from 5.6% to 7.8% between the previous census and this one.

Luiza Sato, a partner at TozziniFreire, points out that the Alliance prioritizes an intersectional approach to addressing these difficulties. “When we cross-check the data, Black women in leadership positions are practically nonexistent,” she says.

Lawyer Isadora Almeida, who joined Demarest in 2019, three years after graduating from PUC, to work in capital markets, is one of the beneficiaries of the Alliance’s initiatives. When she became a senior lawyer in 2023, she expressed a desire to take an international course. She was accepted by several universities with scholarships and chose the University of Pennsylvania, where she received a 60% scholarship. The remainder, as well as housing and tuition expenses, was paid by Demarest through its internal D Raízes program.

Even in a Master of Laws (LLM) program—an advanced graduate law degree aimed at the international community, with students from more than 40 nationalities—Isadora studied with only three other Black students. “It was just three African students and me in my year,” she says. After the course, she also spent a year working at a U.S. firm as an international lawyer.

She says the opportunity was very important for her career. “The LLM is already a very good course for opening minds, very strong in networking and preparation for cross-border work. For those who work with transnational law, it is a more important experience than any academic one; it opens opportunities for attracting clients,” she explains. She currently sits on the board of the D Raízes program.

According to Robson de Oliveira, the Legal Alliance for Racial Equity’s current focus is on maintaining awareness-raising events. Earlier this month, the initiative brought two judges to speak to lawyers at the firms about the application of the National Council of Justice’s (CNJ) Racial Protocol. Topics such as algorithmic discrimination and racial biases in artificial intelligence have already been addressed. The next event, with no theme defined yet, is expected to take place in late June.

The firms that took part in the survey were BMA, Demarest, Lefosse, Lobo de Rizzo, Mattos Filho, Pinheiro Neto, Stocche Forbes, TozziniFreire, Trench Rossi Watanabe, and Veirano.

*By Luiza Calegari — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Regulation and scale challenge startups

Transition to midsize status can take up to eight years, depending on sector and capital runway

 

 

In 2011, when Carime Vitória da Silva Rodrigues applied for an undergraduate research scholarship at the Chemistry Institute of the University of Brasília (UnB), she did not imagine that her nanotechnology research would become the seed of a startup. Founded in 2019 within UnB’s Technological Development Support Center by Rodrigues and professor Marcelo Oliveira, Krilltech Nanotecnologia Agro began operations with a single product, derived from the application of carbon nanoparticles to enhance plant metabolism. Today, the company has filed a patent in Brazil, has five products in its portfolio, and expects to generate around R$15 million in revenue in 2026.

Marcelo Oliveira, who holds a PhD in inorganic chemistry and is a professor at UnB, says that, unlike other deep tech startups—those that innovate based on scientific research—Krilltech grew by overcoming regulatory barriers. Another differentiator is its care in obtaining licenses. Krilltech’s products are liquid solutions containing spherical carbon nanoparticles, each approximately 56.5 million times smaller than a soccer ball, and are applied to plants or soil. The technology improves plant development, making it more efficient and healthier.

“The biggest challenge for deep techs, in any segment, is overcoming regulatory barriers, especially in sectors where these requirements are very high, particularly in obtaining licenses,” says Oliveira, who is also Krilltech’s CEO.

The maturity level of an innovation before it can be considered operational in a commercial environment is measured by the Technology Readiness Level (TRL) model, which has 9 levels. In Oliveira’s view, the most critical period for a startup is reaching TRL stages 7, 8, and 9, when products need to pass commercial-scale tests.

Based in a 1,200-square-meter plant in Brasília, Krilltech began exporting its products to the European Union, Peru, and Uruguay in 2025. In late April this year, the company was one of six selected for the Al Miyah challenge, held in the United Arab Emirates to address agricultural water scarcity. Krilltech competed against 846 teams from 54 countries, and the challenge winner will be announced at the end of this year.

Commercial production, which began in 2021, gained scale after Krilltech signed a marketing agreement with Casa Bugre in December 2022. A distributor of high-performance agricultural inputs in Brazil’s agribusiness market for more than four decades, Casa Bugre invested R$7 million in Krilltech in 2024.

“Our production in 2025 was 30 times higher than in 2021, when we were a startup. We expect to grow 26% this year,” says Carime Rodrigues, who holds a PhD in chemistry from UnB and is Krilltech’s research and development director.

Overcoming regulatory barriers also challenges those developing innovations in finance. This scenario led to the creation of Pinheiro Neto’s Legal Acceleration Program for Startups, which is marking 10 years of operations. Coordinated by lawyer Bruno Balduccini, a partner at Pinheiro Neto, the program has advised 46 startups—17 of which raised financing or put their businesses on investors’ radar for a sale. Companies such as Pier Seguradora and corporate benefits company Caju have gone through the program.

Balduccini notes that the maturation period for a startup to reach annual revenue above R$20 million can take up to eight years. This period varies depending on the sector, capital runway, and the company’s execution capacity. “B2B software companies, fintechs, and SaaS [software as a service] companies usually manage to reach scale more quickly because of recurring revenue and greater operational scalability. More regulated sectors or those intensive in physical operations—such as logistics, healthcare, and climate tech—tend to require longer cycles,” he says.

The lawyer noticed that innovative companies in segments such as finance and insurance struggled to comply with regulations without legal support. “The program advises those with a good idea who can’t afford our hourly rates. Payment happens when the startup raises funds; we receive part of what it raises in cash,” he explains.

One successful case in Pinheiro Neto’s program is Exato Digital, a technology company that conducts background checks on individuals and companies. The startup emerged from a software consulting firm founded by André Takitani Pires and Leandro Villani Cambraia Casella, technology professionals and friends from their time at Professor Camargo Aranha State Technical School in Mooca in the late 1990s.

Exato was founded in 2019 in response to demand from consulting clients for an automated service to verify documents, certifications, and certificates. The partners realized they had a product with potential to scale and that worked very well from a technological standpoint. However, with the enactment of the General Personal Data Protection Act (Law 13709 of August 14, 2018), known as LGPD, Exato needed to invest in legal advice.

“At the time, we didn’t have the budget to hire a firm the size of Pinheiro Neto. The program fit like a glove because we could pay with part of the investment that would still be raised,” Casella says.

With its participation in the law firm’s program, which began in 2020, Exato attracted clients such as Bradesco, which became one of the startup’s investors. In April, the company’s revenue totaled R$2.5 million. The projection is to end December this year with monthly revenue of R$5 million. Exato’s client portfolio includes companies such as Uber, Bradesco, Stone, JBS, Fleury, Habib’s, McDonald’s, Banco BMG, Drogaria São Paulo, and Espaçolaser.

In the last quarter of 2025, Exato raised R$20 million in a Series A round led by Quartzo Capital and Bradesco. Casella says the company has reached break-even and can reinvest its revenue. “We have been growing at break-even; we are no longer in the red, which is excellent for this moment because the venture capital market depends heavily on interest-rate behavior,” Casella says.

By Suzana Liskauskas — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/

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Tax overhaul clouds outlook for infrastructure concessions

Companies warn delayed compensation rules could strain cash flow and disrupt operations from sanitation to highways

Sabesp wastewater treatment plant in São Paulo — Foto: Divulgação
Sabesp wastewater treatment plant in São Paulo — Photo: Divulgação

Brazil’s infrastructure market sees a high risk of delays in adapting to the tax reform, which begins to take effect in 2027. Companies are already preparing a wave of requests to rebalance contracts, but there are concerns that delays could hurt concessionaires’ cash flow and, in some cases, make operations unviable in segments that currently do not even issue invoices.

Concerns about the tax changes are not limited to infrastructure. But unlike other sectors, concessionaires are not free to adjust prices and pass on cost increases, said tax lawyer Jorge Lopes, a partner at Pinheiro Neto Advogados. “It is a sector of long-term contracts. Other sectors have more freedom to react quickly to impacts,” he said.

Sanitation companies are in the most dramatic situation, according to companies and tax lawyers. The sector, which does not pay municipal and state taxes, was left out of the exemption list in the reform. Abcon, the association representing private sanitation companies, estimates that the average impact on tariffs could reach 18%, considering that the tax rate would rise from the current level of as much as 9.25% to 26.5%, according to preliminary calculations.

The law recognizes that infrastructure concessionaires have the right to compensation for tax increases, through tariff increases, for example. However, calculating and applying that compensation is often difficult and slow.

In sanitation, companies have not even reached the stage of discussing contract rebalancing because they are still in an earlier, more bureaucratic phase: understanding how invoices will be issued for taxes from which they are currently exempt, said Abcon president, Christianne Dias.

“There is a working group with the Federal Revenue Service, but the rule is not ready. There is a lot of anxiety among members. In January 2027, companies will start facing fines, and no one knows yet what the system will look like,” she said.

Worse than the fines, there is a risk that companies’ operations could be halted without this system, said André Menon, a tax partner at law firm Machado Meyer. “Because of the validation rules, which are the minimum information required for a tax document to be issued, the taxpayer cannot even operate. The company would not be able to bill for water, for example.”

Asked about the issue, the Federal Revenue Service said there are “no more uncertainties,” since the manuals on water and sanitation invoices were published in April. Abcon, however, said it is still waiting for a guide with the clarifications companies need to develop their systems, and that the outlook remains unclear.

Once that stage is cleared, sanitation companies will still have to deal with contract rebalancing, another issue that is more complex in the sector because of the large number of regulatory agencies. “There are 110 agencies, so standardizing the methodology is very difficult,” Dias said.

Abcon believes the solution will be to negotiate a reference rule with ANA, the National Water and Sanitation Agency, which sets the parameters that local agencies must follow. So far, however, talks with the federal agency have not advanced. Outside that framework, rebalancing itself can only be granted by the local authority. “The risk is that the sector will grind to a halt and investment will be frozen,” Dias said. ANA declined to comment.

Preventive rebalancing

For highways, talks with the largest agencies, ANTT, the National Land Transportation Agency, and Artesp, the São Paulo State Transportation Agency, are already underway, but regulators have not yet put forward a concrete proposal.

“The main concern is to give momentum to the issue with a view to concluding it still in 2026, so that 2027 begins with the [contract rebalancing calculation] methodology in place and concessionaires do not face a cash-flow mismatch,” said Marco Aurélio Barcelos, president of the Brazilian Association of Highway Concessionaires (ABCR).

He said it is difficult to quantify the average impact of the reform because it varies greatly from case to case. In more recent contracts, where there are still more works to be carried out, the effect is smaller, since taxes can be offset with credits generated by investments. More mature projects, where works have already been delivered, are more affected.

ABCR’s proposal is to work with annual precautionary rebalancing, anticipating the effects, instead of waiting for the impacts to occur and only then filing rebalancing requests, as usually happens. “The idea is to project the impacts of the reform for 2027 at the end of 2026 and already carry out a rebalancing. At the end of the year, we will have the actual information on the impact and, with that, make the adjustment.”

ABCR argues that this should be done every year, always with advance compensation for the following year, along with an assessment of the previous year, supported by independent verifiers.

Sector agencies still do not have a proposal, but there are signs that the precautionary rebalancing model could be adopted in the case of the tax reform.

ANTT Director General Guilherme Sampaio said in a statement that the possibility of precautionary and evidence-based rebalancing is being considered. “At this moment, however, there is still no definitive methodology approved by ANTT,” he said. Sampaio noted that he understands companies’ concerns and stressed that ANTT should address the issue “as quickly as possible, without compromising technical consistency and legal certainty.”

Artesp said it is preparing a methodology “based on objective technical criteria, taking into account the specific characteristics of each concession.”

Risk matrix

The National Civil Aviation Agency (Anac), which regulates airports, said it has a working group with companies to discuss the methodology for calculating the impacts. The National Waterway Transportation Agency (Antaq), which oversees ports, said that “any requests must demonstrate the causal link, the materiality of the impact and its adherence to the risk matrix.”

The Federal Revenue Service noted that the law gives regulatory agencies 90 days to respond to rebalancing requests, with a one-time extension of another 90 days.

Despite concerns over the start of implementation, Pinheiro Neto’s Lopes said the reform will be phased in.

In 2027, Contribution on Goods and Services (CBS) will take effect, replacing federal taxes. Starting in 2029, the transition to Tax on Goods and Services (IBS), which will replace state and municipal taxes, will begin. A testing phase is already starting this year.

Lopes also said segments such as energy and telecommunications, which already face high tax rates, should feel less of an impact.

The infrastructure segment that will benefit the most is public transportation, which will be exempt.

Even in that sector, however, there are doubts. For example, in the case of subway operators, it is not clear what treatment will apply to subcontracting in operations and maintenance, which is common, Machado Meyer’s Menon said.

*By Taís Hirata — São Paulo

Source: Valor Internatiuonal

https://valorinternational.globo.com/

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Foreign investors cut Brazil exposure, cooling stock rally

Outflows from Brazilian stocks reach R$11.4bn in May as oil, global rates and tech rotation reshape risk appetite

 

 

Over the past 30 days, non-resident investors have put money into Brazil’s stock exchange in only two sessions, and the amounts were almost symbolic. In May alone, withdrawals total R$11.4 billion, in a possible sign that the rally in Brazilian stocks has come to an end.

The shift in foreign investors’ mood had already been flagged by Intraday at the start of the week, but it has intensified since then. It is no coincidence that the benchmark Ibovespa stock index has moved away from its record level of 199,000 points and fell below 180,000 points on Thursday (21).

From the start of the year through the peak reached on April 14, Brazil’s equity market saw inflows of R$69 billion from foreign investors, according to B3 data. That was almost three times the amount that entered the market in all of 2025, when inflows totaled R$25.4 billion.

Since April 15, however, investors have withdrawn R$23.9 billion, a little more than one-third of the volume that had entered the stock market in 2026. During that period, there were inflows in only two sessions: April 20, when R$32 million entered the market, and May 8, when net inflows totaled R$118.8 million.

“The mood has turned more negative,” Bank of America strategists David Beker and Paula Andrea Soto said after a round of meetings with investors in London and Paris in recent days.

“Concerns about the external backdrop, combined with recent political developments in the region, are prompting investors to take a more cautious stance. A few weeks ago, clients were waiting for the war to end before increasing exposure to Latin America. Now, the main question is whether exposure to the region will need to be reduced further,” said the BofA team in a note to clients.

War and oil reshape the outlook

In mid-April, foreign investors were extremely optimistic about Brazil, as Intraday reported several times, especially during the spring meetings of the International Monetary Fund.

The country was seen as a relative beneficiary of the war backdrop because it is a net oil exporter, is rich in natural resources and is geographically distant from the conflict. In addition, with the highest real interest rates in the world, the approaching cycle of Selic base-rate cuts was seen as another attraction for domestic stocks.

Since then, however, the market mood has changed decisively. The absence of a quick resolution to the war in the Persian Gulf has imposed a high floor for oil prices, which have struggled to trade below $100 on a sustained basis.

As a result, the impact on inflation is being felt around the world. Fearing second-round effects, many developed markets are already starting to price in interest-rate hikes by central banks, while the rotation into technology stocks does not favor Brazil.

“Although there is still no clarity on how long the war will last, clients believe the damage has already been done,” the BofA strategists said. “The investors we met highlighted concern about higher global rates and their potential impact on currencies and flows to Latin America,” Beker and Soto said.

They also noted that there is additional pressure on central banks in the region and that, even if Brazil’s monetary easing continues, “the magnitude of the cuts is unlikely to provide meaningful relief to the corporate sector.”

In addition, quarterly earnings from technology and artificial-intelligence-related companies were exponential and historically exceptional, contributing to the reversal of the flows seen at the start of the year. That comes on top of the approaching elections and recent local political developments, which have increased investors’ perception of risk and brought a new wave of volatility to local markets.

Brazil rally comes under threat

Against the new global market backdrop, discussions are growing over whether the rally in Brazilian stocks still has enough strength to continue. According to Andre Suaid, head of Latin America equities at Marex, “the party seems to be going on pause.”

“The rally in technology and artificial-intelligence-related stocks continued to accelerate, further concentrating global capital flows in U.S. equities. Expectations of persistent inflationary pressures and higher-for-longer interest rates also weighed broadly on emerging markets, tightening financial conditions and limiting investors’ appetite for risk outside the U.S. The rally in Brazil’s stock market is, in fact, at risk,” he said.

Ricardo Maluf, head of the equity trading desk at Warren Investimentos, said an important part of the flow that went into Latin American stock markets this year had a more tactical component. It was supported by diversification away from the dollar, concerns over artificial-intelligence capex, election-related trades and a defensive move tied to the geopolitical backdrop, “not least because our market has a heavy weighting in banks and commodities and works relatively as a ‘safe haven’ in this environment.”

In Maluf’s view, the reversal of that movement comes as geopolitical conflicts lose some marginal intensity and investors refocus on global fundamentals, especially earnings expectations linked to technology companies, which have returned to their radar. “That ends up attracting flows back to the U.S. and Asia,” he said.

External factors

According to J.P. Morgan’s equities team, led by Emy Shayo Cherman, Brazil’s recent political events do not offer an entry opportunity, even though EWZ, the main Brazilian equity exchange-traded fund on Wall Street, is down 4% since the start of the war after having risen 8% even during the conflict.

“The main reasons behind the decline in Brazilian markets are more external than internal. We believe investors would need the reopening of the Strait of Hormuz, lower oil prices and a decline in Treasury yields to start buying again. For foreign investors, downside risk is greater, considering that the real seems asymmetrical toward appreciation,” Emy Shayo Cherman and Cinthya Mizuguchi said.

J.P. Morgan’s team monitored episodes in recent years when outflows from Brazil exceeded R$10 billion in a 15-day rolling window. “We found 12 episodes of withdrawals of this magnitude or larger, two of which occurred at the start of the pandemic.

“The outflows during Covid were the longest-lasting and posted the largest withdrawal volumes. All other episodes were much shorter, with a duration similar to the current one. So, if history is any guide, the outflow may be nearing an end.”

The executives cautioned, however, that other episodes had not occurred immediately after capital inflows as large as this year’s. “Considering the extraordinary flow observed through April 15, the volume of withdrawals may also end up being larger than the historical pattern.”

* By Gabriel Roca, Bruna Furlani and Maria Fernanda Salinet, Valor — São Paulo

Source:Valor International

https://valorinternational.globo.com/

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Larger Brazil coffee crop fails to ease price uncertainty

Analysts say stronger production is still insufficient to relieve tight global supply and demand conditions

 

 

Brazil’s coffee crop is expected to grow this year, but not enough to ease tight global supply and demand conditions. That was the assessment of industry participants gathered Wednesday (20) at the International Coffee Seminar in Santos, São Paulo.

“We are living through a highly uncertain scenario in which it is impossible to map out any outlook. And this is happening amid climate change and a geopolitical crisis,” said Celso Vegro, a researcher at the Instituto de Economia Agrícola de São Paulo (IEA), on the sidelines of the event.

Companhia Nacional de Abastecimento (Conab) is set to update its estimates for Brazil’s coffee production on Thursday. In its previous forecast, the agency projected a harvest of 66.1 million bags, up 17.1% from 2025.

Private consultancies are pointing to even higher production, potentially surpassing 70 million bags. Expectations of a robust crop are seen as a factor weighing on prices in international commodity exchanges.

On the New York exchange, the July arabica coffee contract closed down 0.68% on Wednesday at $2.6830 per pound. Over the past week, the contract fell 4.42%, according to Valor Data. Over one month, prices declined 6.74%.

In the view of Carlos Augusto Rodrigues de Melo, president of Cooxupé, “Brazil needs to produce 70 million bags, otherwise we will lose market share.” “We expect a good crop both in quality and quantity,” he added in an interview during the International Coffee Seminar.

Melo said current prices remain at good levels, although highly volatile. According to him, there is little coffee available in the market, leaving room for speculation.

Within the coffee industry, the watchword is caution, said Pavel Cardoso, president of ABIC, the Brazilian Coffee Industry Association. He said companies have passed part of the recent price declines on to retailers, but volatility is creating “tension” between buyers and sellers.

“If companies build long inventory positions and prices fall, margins are hurt. If they keep inventories short and prices rise, they are left uncovered. And there is also concern over El Niño. The 2026 crop is potentially the first opportunity to rebuild inventories,” he said.

Vinicius Estrela, from the Brazilian Specialty Coffee Association (BSCA), reinforced those concerns. “Coffee is a long-term crop, and we are having to make short-term decisions with higher costs and uncertainty over commercialization.”

Despite expectations of larger supply in Brazil, Eduardo Carvalhaes, from Escritório Carvalhaes, said he still sees little room, at least for now, for a significant drop in prices.

“In the minds of major buyers, coffee prices will keep falling because the crop will be large. Yet even after all this decline, prices are still at $2.70 [in New York]. [But] the balance between production and consumption is fragile and there are no inventories,” he said on the sidelines of the event.

For IEA’s Vegro, the arrival of the new crop on the market may put pressure on prices, but only in the short term. “Consumption has grown so much, while supply has been constrained, that larger supply now does not offset this imbalance. And logistics costs will eat into part of profitability,” the researcher added.

Last year, coffee exporters incurred an additional R$66.1 million in costs due to inefficiencies at ports, according to calculations by the Conselho dos Exportadores de Café do Brasil (Cecafé). For Eduardo Heron, technical director at Cecafé, concerns for this year are increasing.

“In the second half, with a large volume to ship and the same infrastructure, losses could be even greater,” Heron said. He added that the war in the Middle East and the closure of the Strait of Hormuz are risk factors for the entire supply chain, as they create disruptions to foreign trade.

*By Raphael Salomão, Globo Rural — Santos

Source: Valor International

https://valorinternational.globo.com/

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