CADE investigates cartel in orthoses and prostheses market

On 11 December, the Administrative Council for Economic Defense (CADE) launched an administrative proceeding to investigate alleged antitrust violations in the orthoses, prostheses, and special materials market (OPME) from 2013 to 2023, in several Brazilian states. The OPME market includes orthoses, which are external medical devices, and prostheses, that are artificial devices that replace missing or impaired parts of the body.  

Launched in July 2023, the investigation is the result of the ”Escoliose Operation”, a partnership between CADE and the Prosecution Services of Rio Grande do Norte (MP-RN). The main strategies identified for implementing the alleged cartel were price agreements after the presentation of cover bidding, market allocation, and bid rotation of winning companies. 

CADE launched an administrative proceeding against 24 companies and 13 individuals. As a result, the representatives will be able to file their appeals, specifying the evidence they would like to produce, and selecting up to three witnesses to collaborate with the case.If convicted, the Tribunal of CADE may impose fines of up to 20% of the gross turnover of the companies. Individuals are subject to fines that may vary from BRL 50 thousand to BRL 2 billion. 

According to the OECD database, cartels lead to overcharges of about 20% in comparison to the prices of a competitive market, resulting in annual losses of billions of Brazilian reais to the government and consumers. In addition to being an administrative offence, cartel practices also qualify as a criminal offence. 

CADE’s performance fighting against cartels reinforces its commitment to promote competition and protect citizens’ interests, while ensuring competitiveness both in public and private markets. 

Access Case no. 08700.011013/2025-95.