CADE signs agreement on supposed ambulance bid rigging cartel

The Administrative Council for Economic Defense – CADE signed a Cease and Desist Agreement (TCC for its acronym in Portuguese) with General Motors do Brasil – Ltda. as part of a proceeding that investigates an alleged cartel formation in public bids to the acquisition of 200 ambulances for cities on the state of São Paulo linked to the Unique Health System (SUS). By the agreement signed with CADE, the company will have to collect BRL 33 million as pecuniary contribution.

“The amount of the company’s contribution is equivalent to 4.5 times the value of the contract of the alleged cartel”, stated the Reporting Commissioner, Alessandro Octaviani.

On 16 July, CADE signed TCCs with the other two companies represented in the proceeding (Administrative Proceeding no. 08012.003931/2005-55): HMD Distribuidora de Veículos LTDA. and  Itororó Brás Veículos e Peças LTDA.

In the terms of the agreements, the companies will collect pecuniary contributions of BRL 450 thousand and BRL 2.4 million respectively. HMD also committed to provide technical cooperation with CADE during a one year period.

For Octaviani, the signature of the agreements was convenient, since it serves the purpose of “eliminating anticompetitive conducts between competitors, in any form, on the market of ambulances provision to public authorities”.

The alleged cartel started to be investigated by CADE after documents were sent by the Health Secretariat of the State of São Paulo, body responsible for carrying the public bids, in 2005.

With the signed agreements, the companies commit to cease the investigated practices and the case will remain suspended until CADE certifies the complete fulfillment of the TCCs by the companies.