CADE fines cartel of automotive electronic components market in over BRL 100 million

On 10 June, the Administrative Council for Economic Defense (CADE) convicted Denso Corporation for cartel participation in the wiring harness and automotive electronic components market, and is to pay a fine amounting to over BRL 100 million.

The investigation was launched by the Office of the Superintendent General at CADE (SG) in 2015, through an Expert Opinion that defined the initiation of the Administrative Proceeding against 22 companies and 89 individuals.

Investigated violations refer to an alleged cartel formation through agreements of price-fixing, allocation of projects, graphic division of the market, and exchange of competitively sensitive information.

According to Commissioner Carlos Jacques, rapporteur of the case, the conducts assigned to Denso Corporation occurred between 2000 and 2009, aiming to have economic advantage upon price rises in the wiring harness and automotive electronic components market. He claimed that the practice harmed consumers, since they had to pay higher prices in the acquisition of vehicles containing the cartel inputs.

Some of the parties involved executed cease and desist agreements during the process, while others had the administrative proceeding dismissed due to insufficient evidence on the investigated conducts.

In this regard, the Tribunal of CADE convicted Denso Corporation to pay a fine of BRL 100.787 million, which is to be paid within thirty (30) days, after its publication.

In addition, an official letter is to be sent to the Federal Prosecution Services (MPU) and the Office of the Attorney General of Brazil (AGU) for knowledge of the decision and possible public civil actions.

Access Case No. 08700.009029/2015-66