CADE signs agreements in case in the market of hired labour in healthcare industry

A total of six firms and 35 individuals are to pay more than BRL 34 million in financial contributions

Published in Sep 29, 2022 05:01 PM Updated in Jun 27, 2023 03:10 PM

The Administrative Council for Economic Defense (CADE) signed six Cease and Desist Agreements with firms in the market of hired labour in the industry of health products, equipment and related services, along with 35 individuals associated with the firms. The Tribunal of the Brazilian authority ratified the agreements on 21 September.

The commissioners highlighted investigations into anticompetitive conduct involving hired labour are relatively new in Brazil and are attracting the attention of competition authorities in several jurisdictions.

The Cease and Desist Agreements are part of an administrative proceeding investigating the exchange of competitively sensitive information in the Brazilian market of hired labour in the healthcare industry, especially in the State of São Paulo.

According to the Office of the Superintendent General (SG/CADE), an unincorporated cooperative called ‘MedTech’ or ‘Grupo MedTech’ started engaging in anticompetitive conduct to avoid using consulting services for recruiting professionals in the affected industry.

The method they adopted to obtain market data was sending e-mails to their competition requesting and providing information on current and future practices for hiring professionals according to position and specialisation (compensation policies, assistance programs, benefits and other perks).

Furthermore, the group forwarded tables to be filled out by the recipients of e-mails called ‘pesquisas rápidas’ (quick enquiries), through which they gathered data on the treatment the other group members would give to professionals they were looking to hire.

The firms and individuals involved are to pay BRL 34,302,344.99 in financial contributions to the Fund for De Facto Joint Rights (FDD). If found guilty, the firms might have to pay fines up to 20% of their respective gross revenue in the year prior to the start of the investigation; as for the individuals, the fines can range from BRL 50 thousand to BRL 2 billion.

Access case no. 08700.004548/2019-61.