CADE signs agreement in cartel investigation in auto parts market

On 17 September, the Administrative Council for Economic Defense (CADE) signed a cease and desist agreement with Continental, investigated in a case for alleged anticompetitive conducts in the market of auto parts and accessories, especially braking systems.

The investigation was launched by the Office of the Superintendent General at CADE in 2021, which found evidence of cartel in the commercialization of auto parts. The case already counted with a leniency agreement and a cease and desist agreement with Bosh. In April this year, the case was distributed to Commissioner José Levi. In the following month, Continental Teves AG & Co. applied for a cease and desist agreement and the negotiation went on until September, when the final proposal was presented.

According to Mr Levi, the rapporteur of the case, the agreement reflects the commitment of the company to recognise the practice and find a joint solution to end the proceeding. “Considering the facts, the circumstances, and the grounds set forth, I understand that the criteria of convenience and opportunity for the signature of the agreement were respected, while safeguarding the eventual review of the matter in future cases,” he highlighted.

With the signature, the company commits to cease the conduct, adopt measures to prevent new anticompetitive practices, and make a financial contribution to the Fund for De Facto Joint Rights (FDD) of BRL 272,746.40. The amount is to be paid in a single instalment in 60 days counted from the date of publication of the agreement in the Federal Official Gazette of Brazil.