Lead
Brazil’s Administrative Council for Economic Defense (CADE) has formally opened an administrative proceeding to investigate potential price alignment between LATAM and Gol in the domestic passenger market, the regulator said in a statement on Tuesday.
Background of the inquiry
The decision to launch the administrative process follows work carried out by CADE’s general superintendence, which began a probe in 2023. According to the regulator, that earlier investigation applied advanced data analysis techniques and identified a persistent pattern of interdependence in how the two carriers moved fares on important routes.
Next steps in the process
CADE said that Chile-based LATAM and Gol, which is part of Brazil’s Abra Group, will be formally notified and given an opportunity to present their defense. The regulator emphasized that the opening of the administrative proceeding does not constitute a final judgment on the matter.
Responses from the carriers
Gol issued a statement denying the alleged practices, asserting that it has "always championed free competition and pricing freedom." LATAM also rejected the regulator’s claims and said that free competition is a "non-negotiable value" for the company.
Context and immediate implications
The regulator’s notice frames the matter as an administrative inquiry that will allow both airlines to respond to the allegations. Beyond confirming the use of advanced analytics by CADE’s investigatory team and the identification of a persistent pattern of interdependent pricing behavior, the regulator provided no additional operational or evidentiary details in its statement.
Conclusion
The matter will proceed through CADE’s administrative channels with formal notification to the two carriers and an opportunity for defense. The regulator has not reached a final determination and both airlines have publicly rejected the assertions under review.