Notícias
DECISION
CADE reaches settlement in investigation into the use of pricing algorithms
The Administrative Council for Economic Defense (CADE) approved a Cease and Desist Agreement (TCC) with Intelprice Soluções de Precificação Ltda., developer of the Aprix software, in an investigation into anticompetitive practices in the domestic fuel retail market.
The Administrative Proceeding was initiated to investigate the use of pricing software by gas stations in Brazil, following suspicions that the tool could facilitate price coordination and alignment among retailers.
The TCC represented a significant innovation, as it required the company to ensure the transparency and explainability of its pricing model to the General Superintendence (SG/CADE).
The company acknowledged its involvement in the conduct and committed to cooperating with CADE in the investigations, which are still ongoing within the General Superintendence.
As measures to prevent future anti-competitive practices, the TCC mandates the appointment of a Compliance Coordinator, along with mechanisms for maintaining, updating, and improving the competition compliance program. In addition, it reinforces the need for confidentiality clauses regarding sensitive data in Intelprice’s contracts with its customers. There is also a provision for the implementation of strict procedures for the segregation of prices and strategies of its contractors, especially when dealing with competitors in the same market.
Furthermore, the party subject to the commitment shall notify CADE when its market share, or that of other companies in the economic group, reaches 20% in a given municipality. The agreed-upon obligations also guarantee CADE access to Intelprice’s facilities and its pricing software during the term of the TCC.
Finally, the company has committed to not entering into new contracts until the measures are implemented. CADE may require the company to hire an auditor to confirm that the pricing algorithm has incorporated the antitrust compliance measures.
The signing of the agreement strengthens CADE’s stance regarding conduct in technology sectors, which require sophisticated and timely competition analysis. The deterrent nature of the TCC is particularly relevant, as it strengthens the fight against algorithmic opacity.
The proceedings against the company will be suspended until the final ruling by CADE’s Tribunal, at which time compliance with the obligations stipulated in the agreement will be assessed.