CADE finds Cotrans guilty of cartel conduct in procurement related to government programme Patrulha do Campo in the State of Paraná

On 5 October 2022, the Administrative Council for Economic Defense (CADE) found Cotrans Locação de Veículos guilty of cartel conduct. The investigation involved anti-competitive practice in government procurement for the rental of equipment and vehicles for maintenance, adjustment, and improvements on rural roads in the State of Paraná, as part of the government programme Patrulha do Campo.

The investigation, derived from Operation Rádio Patrulha, results from the leniency agreement signed in August 2019 by the firm Ouro Verde, CADE, and the Prosecution Services of the State of Paraná. In December of that same year, the Office of the Superintendent General of CADE launched an administrative proceeding to search for evidence of an antitrust violation.

According to the signatory firms, the anti-competitive practice happened from 2011 to 2014 through the exchange of communications by their representatives. They intended to reduce competition in the Procurement no. 053/2011 carried out by the State Secretariat of Logistics and Infrastructure and the State Road Department of the State of Paraná.

The Tribunal unanimously decided to impose more than BRL 17 million in fines, following the vote of the Rapporteur of the case—Commissioner Lenisa Prado. Additionally, the firm is prohibited from participating in procurements or contracting with the Federal, State, or Local Governments, the Government of the Federal District, and independent government agencies for a minimum of five years.

The Tribunal determined the dismissal of the case against the firms Bueno Engenharia e Construção, Delta Construções, Paviservice Engenharia e Serviços, Terra Brasil Terraplanagem and two individuals for lack of evidence. It also determined the dismissal of the case against the firm Ouro Verde Locação e Serviço and an individual, given their compliance with the Leniency Agreement. Moreover, the Tribunal determined that the case against the firm J. Malucelli Equipamentos and an individual be stayed until they have complied with the terms of the Cease and Desist Agreement (TCC).

Access case no 08700.004248/2019-82.