CADE convicts companies for cartel in animal rendering market

The Administrative Council for Economic Defense (CADE) convicted three companies, ASM Comércio de Subprodutos de Origem Animal Ltda., ASM Comércio e Coleta de Ossos Ltda., and Frigorífico Cason Ltda., besides two individuals, for antitrust violations in the animal rendering market, in the Brazilian state of Rio Grande do Sul (RS).

Launched after a complaint filed by the Federal Prosecution Services of the State of Rio Grande do Sul (MP/RS) with the Office of the Superintendent General at CADE (SG), the investigation confirmed a cartel in the market of animal by-products, involving rendering industries, as well as transportation companies.

According to Commissioner José Levi, rapporteur of the case, the regional market has characteristics that facilitated a buyers’ cartel formation, such as the limited number of buyers, the standardised nature of the product purchased, and the difficulty in increasing supply.

Messages extracted from chats and emails revealed communication among rivals, with clear references to a prior agreement, exchange of competitively sensitive information, hinder of the operation of competitors not involved in the coordination, and the mapping and division of collection points amongst the participants.

The Tribunal of CADE unanimously decided to convict the defendants to pay over BRL 7 million in fines.

Access Case No. 08700.004404/2016-62