CADE convicts cartel in electricity meters market

The Administrative Council for Economic Defense (CADE) convicted the companies Elo Sistemas Eletrônicos, Fae Ferragens e Aparelhos Elétricos (Fae Sistemas de Medição), and Dowertech from Amazônia Indústria de Instrumentos Eletrônicos, in addition to 11 individuals for participating in a cartel in the Brazilian electricity meter market.

According to the decision, the defendants engaged in conducts such as bid-rigging, market division and monitoring, exchange of strategic information, as well as coordinated cover bidding, which affected public and private procurement throughout Brazil. As a result, the companies and individuals convicted are to pay around BRL 73 million in fines. 

The investigations conducted by the Office of the Superintendent General of CADE (SG) concluded that the violations occurred from 2005 to 2014, with greater intensity between 2011 and 2013. During this period, the companies involved acted systematically, with structured routines to discuss the procurement winners beforehand, monitoring compliance with the agreed division, as well as using reference tables to adjust values and align prices.  If a company won a procurement that was previously "destined" for another, compensation mechanisms were applied to restore the balance between the cartel members. 

CADE launched the administrative proceeding after the signature of a leniency agreement in 2014 that provided a detailed report of the illegal conduct. Throughout the investigations, new evidence was incorporated into the reports through six cease and desist agreements signed with companies and individuals, enabling a broader understanding of the cartel's dynamics, and the identification of other participants.  

For Commissioner Carlos Jaques, rapporteur of the case, the evidence shows that the cartel was highly institutionalised, with evidence of communication between competitors containing anticompetitive content, including exchange of emails, and messages, telephone conversations, as well as sharing of sensitive information in an internet forum. Such characteristics are typical of a hardcore cartel.  

The Tribunal of CADE unanimously decided to convict the companies, as well as 11 individuals, imposing around BRL 73 million in fines.  In addition, the agency decided to dismiss the case due to insufficient evidence for some of the defendants. Thus, the cease and desist agreements suspend the case as to the signatories, as they are to fulfil the obligations set out in the documents. 

CADE signs four cease and desist agreements 

The Tribunal also signed four cease and desist agreements with the company Nansen Instrumentos de Precisão, as well as three individuals, all related to the cartel in procurements for electricity meters. The proposals were submitted in December 2025, after the period for negotiation had opened, and include obligations to cease the practice, cooperate with investigations, and pay up to BRL 15.5 million in financial contributions to the Fund for De Facto Joint Rights (FDD). 

In addition, the obligations included a commitment to cooperate with CADE until a final decision, to attend the proceedings when requested, to communicate registration changes, and to waive the writ of mandamus filed, as well as to prove such withdrawal. Furthermore, the parties agree to adopt measures to not repeat the practices under investigation, to act in good faith in complying with the agreement, and to refrain from any actions that could hinder the progress of the investigations.  

Upon approval, the SG will be responsible for monitoring compliance of the obligations, ensuring that the commitments are fulfilled.