CADE signs agreement on a cartel investigation in the market of automotive clutch

This Wednesday (26 May), the Administrative Council for Economic Defense (CADE) ratified a Cease and Desist Agreement (TCC) with the firms ZF do Brasil, ZF Friedrichshafen AG and ZF Sachs AG, as well as with ten individuals. The agreement was signed within the administrative proceeding investigating a cartel in the Brazilian and international market of automotive clutch.

By signing the agreement, the signatories admit their participation in the conduct, commit to cease the practice and collaborate with the investigation. Additionally, they commit to pay BRL 21.2 million as a financial contribution, which will be collected to the Fund for De Facto Joint Rights.

The proceeding was launched in February 2019 and suggests strong evidence that the parties involved in the cartel fixed prices and trading conditions, allocated customers request for quotes, divided the market among competitors, and shared competitively sensitive information.

In Brazil, the anticompetitive conduct occurred, at least, from 2003 to 2011. In Europe, in turn, wrongdoings with effects in Brazil occurred in the late 1990s as well as from 2003 to 2011.

This is the second agreement signed for this case. In 2015, the firms Schaeffler Brasil, Luk GMBH & Co. KG and Schaeffler Technologies AG & CO KG also signed a TCC with CADE, to which a total amount of BRL 34.4 million has been paid as a financial contribution.