In its resolution , the TDLC analyzed the consequences of Junaeb’s decision on competition, considering its position in the relevant markets that would be affected by the tender.
The Court for the Defense of Free Competition (TDLC) ruled that the exclusion of powdered milk and desserts made from it, did not alter competition in the tender that Junaeb carried out.
This was a public tender carried out by the National School Aid and Scholarship Board (Junaeb.)
The foregoing, to hire the supply of food rations from the School Feeding Program and the Infant Feeding Program.
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With this decision, the Court put an end to the query presented by the companies FoodGroup SpA, Comercial Industrial Fino Mornasco Limitada and Macro Food S.A.
The foregoing, regarding whether or not the exclusion of these inputs was adjusted to the rules of protection of free competition.
This, because the companies questioned Junaeb’s decision, stating that it would have made it difficult for the bidders to participate and impacted the competition and competitive intensity of the bidding process.
Junaeb tender and exclusion of powdered milk
The TDLC collected the analysis carried out by the FNE consisting of examining the market directly affected by the decision. This, added to the related markets in which it could have indirect effects.
In the framework of the consultation, the FNE provided information that showed that a significant number of participants remained in the bidding process analyzed .
These, similar to those of previous tenders and under equivalent conditions of requirements in the quality of inputs for all bidders.
Notwithstanding the foregoing, the FNE reiterated its recommendation regarding of an adequate evaluation of the impacts that this type of decision may have on related markets.
The foregoing, having to have an adequate justification and a gradual implementation, addressing the methodological deficiencies detected in the decision adopted by Junaeb and the magnitude of its potential impact.