CADE fines individual for cartel in automotive parts market

On 12 February, the Administrative Council for Economic Defense (CADE) fined an individual for cartel in the automotive parts market, which manufactures and commercialises clutches for light vehicles and trucks, both to original equipment manufacturers and to the independent aftermarket, in Brazil and Europe.

CADE launched an investigation after signing a leniency agreement with Valeo and individuals involved. During the administrative enquiry, a Cease and Desist Agreement was also signed by several companies and, subsequently, by some individuals. 

In 2019, CADE launched an administrative proceeding that showed evidence of anticompetitive practices by companies such as Valeo, LUK/Schaeffler, and ZF/Sachs, in Brazil and Europe. From 2003 to 2011, the parties exchanged competitively sensitive information, aligned market strategies, fixed prices, and allocated costumers affecting the Brazilian market. 

The Office of the Superintendent General at CADE (SG) confirmed that the parties committed violations such as price-fixing, market allocation, and exchange of competitively sensitive information to avoid losing market share due to an increase of clutches’ prices.  

Antitrust violations occurred through meetings and exchanged emails, affecting the original equipment manufacturers and the independent aftermarket. The cartel aimed to preserve the shares of the companies involved, restricting free competition, and affecting prices.  

Commissioner Camila Pires Alves, rapporteur of the case, highlighted that this practice harmed free competition, consumers, and the market itself.  

CADE imposed a fine of BRL 5,489,021.24 to an individual linked to Valeo, to be payed within 30 days after the final decision, in addition to publicizing the decision and referring the case to the Brazilian Federal Prosecution Services (MPF) and the Prosecution Services of the State of São Paulo (MPE/SP) for possible reparation actions. 

 Access Case no. 08700.000881/2019-00.