CADE signs agreements related to a cartel in the market of rendering industry in Rio Grande do Sul

In the hearing held last Wednesday (30 June), the Administrative Council for Economic Defense (CADE) ratified four Cease and Desist Agreements (TCCs) within the context of a cartel investigation in the market of rendering industry in the Brazilian state of Rio Grande do Sul.

By signing the agreements, eight firms and twelve individuals admit their participation in the anticompetitive conduct, commit to cease the practice and collaborate with CADE's investigation. Additionally, they commit to pay more than BRL 18.7 million as financial contributions, which will be collected to the Fund for De Facto Joint Rights.

The administrative proceeding was launched in 2020 and suggests evidence that the cartel members divided the regional market of rendering industry among themselves. According to the investigation, the rendering plants and shipping carriers part in the collusion mapped and divided collection points and suppliers (slaughterhouses), exchanged competitively sensitive information and impaired competitors' growth. Notes and spreadsheets tracked the monitoring of collection point divisions.

The participants in the conduct agreed to the anticompetitive practices by phone, e-mails and in-person meetings between representatives of the companies. The conduct occurred between 2009 and 2018.

The cease and desist agreements were negotiated with the Office of the Superintendent General of CADE in partnership with the Prosecution Services of the State of Rio Grande do Sul (MP/RS) that started the investigation in 2015 (at CADE, the proceeding was launched in 2016). Additionally, the progress of the negotiation of the agreements signed with CADE occurred in conjunction with the negotiations of a non-prosecution agreement suggested by the MP/RS to the investigated parties.

Access the Administrative Proceeding no. 08700.004404/2016-62.