CADE convicts the Labour Management Body for Ports and other firms for anticompetitive conduct in Belém do Pará

In the hearing of this Wednesday (16 June), the Administrative Council for Economic Defense (CADE) convicted the Brazilian Labour Management Body for Ports in the cities of Belém and Vila do Conde (OGMO-BVC), in addition to seven port operators, for anticompetitive practices. The fines applied sum BRL 4.7 million.

The investigation was launched after a complaint from the Brazilian Agency for Waterway Transportation (ANTAQ) notifying CADE that the OGMO-BVC charged an initial fee (known as an admission fee) for new port operators, which was harming competition in the sector.

In his vote, commissioner Luiz Hoffmann decided for the conviction of the following firms for the anticompetitive practices: OGMO-BVC; Amazon Logistics; BF Fortship Agência Marítima (Novad Agência Marítima); Majonav Navegação; Albras Alumínio Brasileiro; Movimento Transporte e Locação de Máquinas; Santos Brasil Participações; and Norte Trading Operadora Portuária.

"To the best of my knowledge, the information in the case files suggests that the admission fee established after a 2014 assembly was intended to cover debts and obligations previously assumed. Thus passing on costs of incumbent operators to new operators (income transfer), without any reasonability," he stated.

Understanding the case

The Labour Management Bodies for Ports (OGMO) are responsible for the management and supply of port workers services, whose labour contracts are independent or permanent. These bodies exclusively hold the register of port workers. According to Law 12815/2013, the port operations established in the regulation are only to be carried out by professionals registered with OGMO.

Thus, the entry of any new party interested in the market of port operators in the Port of the city Belém do Pará implies the automatic registration with OGMO-BVC.

According to CADE's investigation, OGMO-BVC and related parties imposed an initial fee and additional monthly fee to the new port operators. The charges were imposed in different types and values and were established upon members' decisions in general assemblies.

The Tribunal of CADE concluded that one of the fees stipulated in assembly would have the potential to result in anticompetitive effects as no clear reasons were defined for its charge. Therefore, the Tribunal convicted OGMO-BVC and other operators for the anticompetitive conduct in the segment.