CADE, Federal Police, and Prosecution Services carry out operation to examine alleged cartel in the car carrier market

The Administrative Council for Economic Defense (CADE), the Federal Police of Brazil, and the special task force for combating organised crime of the Prosecution Services of the State of São Paulo (GAECO/MPSP) have conducted a dawn raid named “Operation Ciconia”. This operation aims to investigate and dismantle an alleged cartel in the transport market of new vehicles, better known as car carrier trailers. 

Currently, seven servants from CADE, thirty four federal police officers, and three members from GAECO/MPSP have executed six dawn raids in the states of São Paulo (SP), Minas Gerais, and Mato Grosso. The 1st Lower Criminal Court of São Bernardo do Campo (SP) issued the warrants. 

Following the initial investigations, there is suspicion of illegal activities. These consist of adjustments or agreements that were negotiated by individual persons, linked to business entities, and the union of the sector, aiming to corner or foreclose the market, in whole or in part. 

The individuals under investigation can be held accountable for antitrust violation (Article 4 of Law 8137/90) and criminal association (Article 288 of the Brazilian Criminal Code), as well as potential criminal organisation (Article 2, head provision of Law 12850/2013). 

The name “Operation Ciconia” refers to the order Ciconiiformes, a white storks family of birds.