CADE signs agreement in cartel investigation related to procurement of orthotics and prosthetics

On 26 April, the Administrative Council for Economic Defense (CADE) signed a Cease and Desist Agreement with company Biotronik Comercial Médica in a proceeding related to a cartel in procurement for orthotics, prosthetics, and related materials, especially implantable cardiac pacemakers and respective accessories. The devices are for the diagnosis and treatment of heart diseases.

Upon a decision by CADE, and after Biotronik confessed to partaking in the investigated practice, the company is to pay a financial contribution of BRL 59.1 million. Moreover, the company has agreed to cooperate with the antitrust authority in the investigation.

The rapporteur of the case, Commissioner Luis Brado, highlighted the positive aspects of the agreement in his vote. "A confession always strengthens the focal points of the investigation conducted by the Office of the Superintendent-General. Therefore, I consider the agreement and the stay of proceedings for the defendant timely and convenient," stated Mr Braido

Investigation

Known as "Cartel das órteses e próteses cardíacas," the investigation started on November 2015 through a representation sent to CADE by the Ministry of Justice and Public Security.

The anti-competitive practice involves companies, associations, and individuals accused of defrauding the competitive nature of procurement for acquiring equipment, such as implantable cardioverter-defibrillators, cardiac resynchronization, pacemakers, electrodes, introducer sets, and catheters.

CADE has already signed other agreements within the context of this investigation, and the case is still ongoing.