CADE signs agreements on cartel investigations

On 11 October, the Administrative Council for Economic Defense (CADE) ratified three cease and desist agreements. Two are related to proceedings that investigate cartels in government procurements and another is related to an international cartel that affects Brazil.

In the first case, employees and former employees of the investigated firm signed cease and desist agreements for alleged cartel in the market of works and services, tendered by the local government of Rio de Janeiro. The Tribunal of CADE decided that the individuals, who have admitted to participating in the conduct, are to pay a financial contribution of 1.38 million to the Fund for De Facto Joint Rights (FDD), in addition to collaborating with the investigation.

CADE launched the administrative enquiry in July 2017 to investigate alleged anticompetitive practices in procurements of the Rio de Janeiro department of public works, especially to hire services of engineering and civil construction of large projects.

The second cease and desist agreement had former employees as signatories of the investigated firm in a proceeding that investigates an alleged cartel in the Brazilian market of construction, conservation, and maintenance of roads and bridges. In addition to admitting their involvement in the violation and contributing with the case investigation, the individuals are to pay a financial contribution amounting to BRL 227,000 to the FDD.

The administrative proceeding was launched in November 2021 against 47 firms, 3 unions/associations, and 53 individuals for cartel formation. This cartel mainly affected the Brazilian market for conservation and maintenance of roads and bridges to enforce dual carriageways, restoration, improvement, implementation, and road paving in seven procurements of the Brazilian department of transport infrastructure (DNIT).

The third cease and desist agreement was signed with Toyoda Gosei, in a proceeding that investigates an alleged international cartel of airbags, seatbelts, and steering wheels manufacturing, with possible effects in Brazil. Upon signing the agreement, the firm admitted its participation in the conduct and agreed to pay a contribution of BRL 838,000 to the FDD, in addition to collaborating with the investigation.

The administrative proceeding was launched in June 2017 and investigated 5 firms and 27 individuals for bid rigging.

The cease and desist agreements suspend the case as to the signatories until the final decision of the Tribunal of CADE, as they are to fulfil the obligations set out in the agreements. All the cases are still under investigation by the Office of the Superintendent General of CADE.

Access the administrative enquiry (in Portuguese only) no. 08700.003344/2017-41.

Access the administrative proceeding (in Portuguese only) no. 08700.003244/2017-15.

Access the administrative proceeding (in Portuguese only) no. 08700.002938/2017-35