CADE seeks evidence of possible cartel in the silicate market

Six search warrants were issued to enable dawn raids today (Thursday, 8 November 2012) in companies situated in the Brazilian cities of Mogi das Cruzes, Cajamar, Rio Claro (São Paulo State), Rio de Janeiro (Rio de Janeiro State), Jabotão dos Guararapes (Pernambuco State) and Criciúma (Santa Catarina State).

Since the new law entered into force, this was the third dawn raid conducted by Cade. Such actions demonstrate the Competition Agency´s efforts to diversify the economic sectors that are target of cartel investigations, as well as its will to act in strategic sectors of the national economy.

The dawn raids aim to collect evidence to investigate a possible cartel in the Brazilian silicate market. They were enforced jointly by Cade's staff (including the Attorney-General's office) as well as units from the Brazilian Office of the Solicitor-General, the Brazilian Federal Police and the Brazilian Federal Highway Police. In particular, the eventual evidences may confirm that companies possibly shared information to divide clients and fix prices.

The possible cartel concerns the production and distribution of silicate in the Brazilian national territory. The anticompetitive practice may have occurred from 1999 to 2009, and it may have concerned companies that correspond together to 90% of the Brazilian national market of silicate.

A silicate is a compound containing a silicon bearing anion. When added to other elements, such as sodium and potassium, it may be used in cements, textile, woods, agriculture, etc. Given its utility in various industries, the silicate is an essential product to the Brazilian national economy.