CADE recommends conviction in case of international light-duty vehicle market

The Office of the Superintendent General at CADE (SG) recommended the partial conviction of six companies and 23 individuals while investigating alleged exchange of competitively sensitive information in the international market for light-duty vehicles intended for passenger transport.

The SG launched an administrative proceeding in July 2024, and identified evidence of coordinated behaviour between competitors related to the R&D projects for embedded systems in certain car models. Therefore, such conduct could potentially reduce competitive uncertainty, affect innovation incentives, and harm consumers.

According to CADE’s expert opinion, the case involved light-duty vehicles intended for passenger transport, manufactured in Brazil or imported, mostly in the premium segment.

Despite the fact that the contacts under investigation took place abroad, the SG pointed out that the technologies discussed by the companies were also incorporated into vehicles sold or manufactured in Brazil.

After the discovery phase, CADE recommended the conviction of Audi, BMW, Porsche, and Volkswagen, as well as individuals associated with these companies for antitrust violation. It also recommended implementation of fines and other applicable penalties, in accordance with Law 12529/2011.

Regarding Mercedes-Benz and associated individuals, the SG advised to dismiss the administrative proceedings.

Such recommendations do not constitute a final decision, and the records are to be forwarded to the Tribunal of CADE to conclude the case.

Access Case no. 08700.000478/2024-30