CADE signs agreement in medical services sector

On 20 August, the Administrative Council for Economic Defense (CADE) signed a cease and desist agreement with COOPANEST (the Anaesthesiology Cooperative of the Brazilian state of Espírito Santo), investigated in an administrative proceeding for alleged anticompetitive conducts in the specialised medical services sector.

The investigation was launched in 2016, based on a complaint filed by AEBES (the Evangelical Charitable Association of the Brazilian state of Espírito Santo) that reported coordinated practices among medical cooperatives of the region and FEBRACEM (Brazilian Federation of Medical Specialties Cooperatives).  

The alleged practices included uniformisation of contractual proposals, threats of work stoppage, boycott, and refusal to provide services, among others. 

In September 2024, the Tribunal of CADE convicted COOPANEST and the fines amounted to BRL 14.5 million. The cooperative proposed the signing of a cease and desist agreement as a consensual understanding to discontinue the sanctioning litigation.

COOPANEST admits participation in the investigated conduct and commits to pay BRL 9.3 million to the Fund for De Facto Joint Rights, to implement a compliance programme with regular training, to adopt a code of conduct with formal guidelines and reporting channels, as well as to abstain from partaking in anticompetitive practices.  

President Gustavo Augusto, rapporteur of the case, highlighted that the agency is committed to competition enforcement and the use of tools for consensual solutions of public interests. 

Eventual non-compliance with the commitments may entail the reopening of the case and application of additional fines.