CADE investigates alleged cartel in public procurements for the acquisition of school material and uniforms

The General Superintendence of the Administrative Council for Economic Defense opened on 31 December 2014, an administrative proceeding to investigate an alleged cartel in public procurements for the acquisition of school material and uniforms in the states of São Paulo, Rio de Janeiro, Santa Catarina and Goiás. 

The administrative proceeding no 08012.008612/2012 was opened based on documents sent by the Public Prosecutor of the state of São Paulo. 

The documents show evidence that 11 companies and 21 individuals were in constant contact aiming at fixing prices and adjusting advantages in public procurements, so that they could allocate clients and markets. The companies’ representatives settled previously who would win a determined procurement and adopted strategies to define its result, restricting competition and the competitive aspect of the event. 

CADE’s General Superintendence noticed that the alleged cartel would have occurred, at least, between 2007 and 2012. With the opening of the administrative proceeding, the defendants will be notified to present their defense. At the end of the evidentiary stage, the General Superintendence will issue an opinion recommending either the condemnation or the case filing to CADE’s Administrative Tribunal, which is responsible for the final decision.