CADE convicts cartel in the fuel retail market in the state of Santa Catarina

This Wednesday (2 August), the Administrative Council for Economic Defense (CADE) convicted a cartel in the market of fuel retail that operated in the cities of Chapecó, Caçador, São Lourenço, Lajes and Concordia in the state of Santa Catarina. The involved and convicted parties are two individuals and the companies Stang & Stang, Comércio de Combustíveis Stang, PPT Comércio de Combustíveis, Natal Comércio de Combustíveis, and PS Combustíveis. The applicable fines totalled more than BRL 55 million.

In November 2020, the Office of the Superintendent General of CADE started investigating the case based on a complaint made by the Prosecution Services of the State of Santa Catarina.

According to the investigation, from December 2016 to October 2017, the managing partner of the fuel station group Delta was in contact with an owner of a gas station in Chapecó to agree on price adjustments for gasoline, ethanol and diesel in the city. Consequently, they seized an opportunity to extend the illegal agreement to other municipalities that had a relationship with the owner of the gas station in Chapecó and to which group Delta distributed fuel.

Evidence showed the two involved parties would often set prices over a message application. The text communication also indicated the parties monitored the fulfilment of the agreements in addition to threats at times if they did not fulfil with set conditions immediately, especially in relation to the municipality of Chapecó.

The case rapporteur, Commissioner Luis Braido, stated in his vote that the illegal agreement harmed competition and consumers. "We can observe that the parties envisioned, in any manner, agreeing on setting, manipulating or adjusting prices with rivals for goods or services offered separately, resulting in considerable price changes to end consumers. Therefore, the violation had a negative impact on the market”, he stated.

The Tribunal of CADE determined the involved firms are subject to fines amounting to over BRL 48 million and individuals to fines of BRL 7 million. Moreover, as stated in the vote of Commissioner Gustavo Augusto, the members of the Tribunal determined non-financial penalties to involved individuals. The measure aims to ensure the deterring character of cartels in the fuel retail market, which is often subject to CADE’s scrutiny.

Access Case no. 08700.005639/2020-58.