CADE hears Caixa witnesses in case concerning lottery market.

The Administrative Council for Economic Defense (CADE) has continued the administrative process against Caixa Econômica Federal (CEF) for possible anti-competitive practices in the lottery sales sector.

CADE will hold hearings this Friday (13) with three witnesses indicated by Caixa Econômica Federal (CEF) in the administrative process that investigates possible anti-competitive practices in the lottery sales sector. The hearings will take place at the agency's headquarters in Brasília, as established in Dispatch SG No. 807, published last Monday.

The General Superintendence (SG) of CADE has determined that the hearings will be held in the SG Meeting Room, in the Carlos Taurisano Building. Daniel Resende Scalia will be heard at 9:00 AM, Renata Canedo de Oliveira at 10:00 AM, and Auricelia de Jesus Araujo at 11:00 AM.

The complete qualification of the witnesses was presented by Caixa on June 6th, through Petition SEI 1574109, meeting the deadline established by SG in Dispatch No. 738/2025.

The administrative process was initiated following a complaint from the Association of Digital Lottery Game Intermediaries (Aidiglot) against Caixa Econômica Federal and the Brazilian Federation of Lottery Companies (Febralot). The investigation seeks to determine whether the state-owned bank implemented measures to prevent lottery outlets from forming partnerships with digital platforms that intermediate lottery games.

The Official Gazette of the Union published two rulings by the Superintendent-General of the Administrative Council for Economic Defense – CADE, Alexandre Barreto de Souza, one on June 6th and the other on June 9th, in the administrative process initiated by the Association of Digital Lottery Game Intermediaries (Aidiglot) against Caixa Econômica Federal (CEF) and the Brazilian Federation of Lottery Companies (Febralot) for possible anti-competitive practices in the lottery sales sector.

Caixa was notified on March 27th of the need to submit the qualifications of up to three witnesses along with its administrative defense, with an initial deadline of 30 days. On April 28th, the institution requested a 10-day extension, which was granted by the General Superintendence.

Despite the extended deadline, Caixa's defense, presented on May 16, did not include the names of the witnesses. The institution even requested, on June 6, an additional 15 days for this information, arguing that it needed time to "identify witnesses who are relevant to its defense strategy."

In the current order, the General Superintendence informs that the "Represented Party" may submit written statements signed by witnesses, containing facts relevant to clarifying the merits of the case.

According to the complaint filed by Aidiglot, now Aigaming, CEF and Febralot allegedly adopted judicial and administrative measures that, in the association's assessment, constitute abuse of the right to petition, a defamatory anti-competitive campaign, and the imposition of restrictions on free competition in the sector.

Aidiglot is represented by lawyers Mauro Grinberg, Ricardo Casanova Motta, Luiz Felipe Drummond Teixeira, and Marcos Tadeu Pastor Dalle Molli. Caixa is represented by lawyers Maria Eugênia Novis and Erica Sumie Yamashita, while Febralot is represented by Lirian Sousa Soares Cavalhero.

In its request for an extension of time, Caixa stated: “CAIXA ECONÔMICA FEDERAL (“CAIXA” or “Represented Party”), duly qualified in the records of the aforementioned Administrative Process, respectfully requests, through its undersigned attorneys, in response to Dispatch SG No. 738/2025 (SEI 1567211), an additional period of 15 (fifteen) days, therefore, until June 23, 2025, to present the complete qualification of the witnesses, so that the Represented Party has sufficient time to finish identifying witnesses who are relevant to its defense strategy, in accordance with the principle of full defense and adversarial proceedings.”

Superintendent-General Alexandre Barreto de Souza has determined the sequence of hearings. According to article 455 of the Code of Civil Procedure, it is the responsibility of the lawyers to inform their witnesses about the date, time, and location of the hearing.

Recently, CADE (Brazil's antitrust authority) rejected the so-called preliminary arguments, that is, the initial arguments presented that attempted to close the process before the analysis of the merits. At the same time, the Brazilian antitrust authority accepted Caixa's request to present more documents and evidence until the end of the investigation phase of the process. In practice, this means that the process continues normally at CADE, without being prematurely closed, and Caixa will have more time to gather and present documents that will help in its defense.

Update

A new order from the Superintendent-General of the CDE, Alexandre Barreto de Souza, was published in the Official Gazette of the Union this Friday (13), canceling the hearings scheduled for 06/13/2025, allowing Caixa Econômica Federal to add to the records written statements signed by the people listed as witnesses.

“Considering the conclusions contained in Technical Note No. 49/2025/CGAA11/SGA1/SG/CADE (SEI No. 1576888), I incorporate its reasoning into this Decision and decide to cancel the hearings scheduled for June 13, 2025, allowing the Respondent to submit written statements signed by the persons listed as witnesses.”