CADE Applies 120 million BRL in Fines against Fuel Cartels

The Brazilian Administrative Council for Economic Defense – CADE -, on the 6 March Tribunal session, issued a condemnation in six cases of cartel in the fuel market throughout Brazil. Altogether, about 120 million BRL in fines were imposed.

During the trial, the president of CADE, Vinicius Marques de Carvalho, stated that the fuel sector is of great importance for the Brazilian population, considering both the productive sector and the final consumers, because its impacts are considerable on the industrial production, on inflation and on other variables related to income. "The purpose of these decisions is to dissuade cartels across the country. These trials warn gas station owners all over the country that if there is an inappropriate behavior from a competitive standpoint, it is very likely for CADE to identify and punish such conduct with the necessary rigor" said Carvalho.

The rulings also recommend that public agencies stop or cancel granting to cartelists: payment installment in federal taxes, as a whole or partially, tax incentives or subsidies.

The fines to be paid will be collected by the Brazilian Diffused Rights Fund (“FDD” for its acronym in Portuguese), which entrusts the money to public agencies and civil nonprofit projects that aim at the recovery of assets and protection of diffuse rights like those entrenched within the ambit of environment protection, historical and cultural heritage or consumer rights.