CADE convicts cartel in the fuel supply market in the state of Paraná

On 27 September, the Administrative Council for Economic Defense (CADE) convicted two individuals, the company Centro Automotivo Delta (Stang Group), and the head office of Comércio de Combustíveis Toscan for cartel formation in the fuel resale market in the city of Francisco Beltrão, in the state of Paraná.

The Office of the Superintendent General of CADE learned about the alleged violation after a complaint brought in 2019 by the Prosecution Services of the State of Paraná. According to the evidence, the managing partner and an employee of Centro Automotivo Delta were in contact with the representative of Comércio de Combustíveis Toscan to agree on the division between the items provided for in procurement processes for the purchase of fuel carried out by the Francisco Beltrão local government. The parties involved agreed on which product every company would make the winning bid.

Evidence show that representatives of the Stang group exchanged messages with a representative of the Toscan group via WhatsApp. They agreed that the Toscan group would be awarded the contract for ethanol and S.500 diesel, while the Stang group for petrol, S.10 diesel, and arla.

The Rapporteur of the case, Commissioner Luis Braido, stated that the cartel affected the prices for end customers and had a negative impact in the market. "The evidence show that the agreement was implemented and harmed competition and consumers," he said.

For cartel formation, the companies and the individuals are to pay fines amounting to BRL 5,873,554.21. The members of the Tribunal dismissed the case against the branch of the company Comércio de Combustíveis Toscan for lack of standing to sue, and against an individual for lack of evidence.

In addition to the fines imposed, the Tribunal also decided that Centro Automotivo Delta and the head office of Comércio de Combustíveis Toscan are prohibited from participating in procurements or contracting with the Federal, State, or Local Governments, the Government of the Federal District, and independent government agencies for a minimum of five years. Thus, individuals are prohibited from carrying on trade for five years on their own behalf or as a representative of a firm.

Access Case no. 08700.005637/2020-69.