CADE convicts Sintracon/SC for pricefixing

On 27 November 2024, the Administrative Council for Economic Defense (CADE) convicted the Sindicato dos Transportadores Autônomos de Contêineres e Cargas em Geral de Itajaí e Região (Sintracon/SC), a Brazilian carrier union in the state of Santa Catarina, for price fixing in road freight charged by independent carriers. According to CADE, the preparation and disclosure of price lists, even if not compulsory, is enough to be considered an antitrust violation, since it influences concerted practices.

In March 2018, the authority launched an administrative proceeding after a consultation, where Sintracon/SC and the Sindicato das Empresas de Veículos de Transporte de Carga e Logística de Itajaí e Região (Seveiculos), another Brazilian carrier union from the state of Santa Catarina, decided to clarify some questions on minimum price lists for road freights, previously established after their stoppage in the sector of road freight transportation. At the time, the Tribunal of CADE concluded that the price lists would hinder competition, so they could not be established. However, the suggestive lists were issued on the unions’ websites even before CADE’s decision,  an indicative that they had been practicing the conduct prior to that..

According to Commissioner Victor Fernandes, rapporteur of the case, price lists might facilitate pricefixing agreements in the market. “Market players tend to follow the price lists guidance and balance the service pricing, significantly influencing one of the most relevant variables of competition. In addition, even if not expressly mandatory, it is expected that the competitors will not offer  prices lower than suggested for the services”, he highlighted. Thus, the expectation may hinder competition, since the economic agents could feel under pressure to follow the suggested prices not to lose clients.

The Tribunal of CADE  decided unanimously to follow the vote of the rapporteur of the case and convicted Sintracon/SC to pay BRL 100 thousand in fines, besides removing every remaining reference to price lists from its websites.