Brazil’s antitrust authority has initiated an investigation into alleged pricing coordination between Gol Linhas Aéreas and LATAM Airlines Brazil on domestic routes. This procedural step does not represent a final ruling; instead, the airline companies have been given an opportunity to present their defenses and submit evidence. The investigation, launched by the Administrative Council for Economic Defense (CADE), examines patterns of interdependence in pricing movements, analyzed through complex data and contracts with pricing technology providers.
CADE’s review indicates that the use of algorithmic tools and shared data platforms might facilitate tacit collusion, especially in markets with high information transparency and concentration. Both Gol and LATAM have denied any collusion, affirming their commitment to competition and compliance with the law. The regulator’s focus is on routes with substantial commercial importance, where LATAM controls 38% of the market share, with Gol holding 33%, and Azul Brazilian Airlines at 29%.
The investigation aims to discern whether the observed pricing behaviors reflect independent market actions or covert collusion influenced by technology and data sharing mechanisms. The final verdict could lead to sanctions if violations of antitrust statutes are confirmed, but no decision has been made at this stage.
