CADE convicts individuals for bid rigging in Rio Grande do Norte

On 25 September, the Administrative Council for Economic Defense (CADE) convicted 10 companies and 4 individuals for bid rigging, conducted by the government of the State of Rio Grande do Norte (RN) to purchase graphic materials. The Tribunal of CADE determined that involved parties are to pay more than BRL 1 million in fines.

The scrutiny began in September 2016, based on a complaint submitted by the Prosecution Services of the State of Rio Grande do Norte, substantiated by considerable evidence seized during a search and seizure named “Operação Sangria”, in the state’s municipality of Caraúbas.

The Office of the Superintendent General of CADE concluded that the bid rigging occurred from 2012 to 2014, consisting of price fixing agreements among competitors, conditions and advantages, and market division. To this end, competitors would prepare price quotes jointly and share documents and competitively sensitive information. Also, the SG observed that the involved parties had coordinated actions, aiming to harm competition in municipalities’ procurements in electronic reverse auctions.

The conviction for antitrust violation is under the terms of Article 36 of Law 12529/11, subject to fines to be payed within 30 days.

Access case no. 08700.003826/2015-30