CADE convicts cartel in the fuel retail market in Paraná

On 27 November, the Administrative Council for Economic Defense (CADE) convicted two individuals and 12 legal persons for cartel formation in the fuel retail market in the city of Francisco Beltrão, in the state of Paraná. In addition, CADE convicted one legal person and one individual for inviting others to partake in a cartel in the city of Marmeleiro. The imposed fines totalled more than BRL 59 million.

In November 2020, the Office of the Superintendent General of CADE (SG) launched  the administrative proceeding, following a complaint by the Prosecution Services of the state of Paraná, to investigate antitrust violations related to price rigging and agreements among competitors, which could harm free competition and consumers. 

The electronic communication between the parties involved was used as evidence and showed that the investigated conducts took place from 2016 to 2017. The case is part of a series of investigations in other cities of Paraná and Santa Catarina.

Based on the investigation, there were price-fixing and conditions for sale and exchange of competitively sensitive informationamong fuel stations in Francisco Beltrão, as well as cartel partake invitationin Marmeleiro, both cities in the state of Paraná.

Commissioner Camila Alves, rapporteur of the case, highlighted that the defendants acted to agree, arrange, manipulate, and collude with competitors for goods or services offered separately, harming competition and consumers.  

“In accordance with CADE’s case law, cartel cases fall under the per se rule. That is, signing an agreement among competitors to arrange and manipulate, or fix prices, conditions, production or market division is an antitrust violation, since this type of practice incur in harmful effects to competition are”, she stated.

Again, according to CommissionerAlves, the practice of inviting others to partake in a cartel must be seen as violation, since it involves a presumption of harmful effects to competition. The materiality and authorship of the invitation are enough to constitute violation, and the defendant is responsible for showing that the presumed effects did not occur or could not have occured.

Thus, the Tribunal of CADE convicted the companies involved to pay fines amounting to over BRL 56 million. The individuals are to pay over BRL 3 million in fines. The total amount of the imposed fines is of BRL 59,764,748.93.

Access Case no. 08700.005638/2020-11