CADE signs cease and desist agreement with Álya Construtora

On 10 December, the Administrative Council for Economic Defense (CADE) signed a cease and desist agreement with Álya Construtora S.A., former Construtora Queiroz Galvã, for alleged cartel on the contracting of electromechanical assembly services for the Angra 3 Nuclear Power Plant. 

The investigation was launched by the Office of the Superintendent General at CADE (SG), which found evidence of coordination between large business groups in the early stages of the procurement process. According to the SG, the companies allegedly collaborated to influence the drafting of the public call, setting conditions to facilitate the participation of previously aligned consortia, which reduced the competitiveness of the procurement. As a result, only two consortia were qualified, both formed by companies under investigation.  

Furthermore, CADE also identified evidence that the groups involved had previously discussed the consortia composition, defined common parameters for the preparation of business proposals, and coordinated the execution of work packages, which included collective negotiations, as well as the combined presentation of resources and strategies.  

With the signature of the agreement, Álya confessed participation in the conducts, and committed to stop the potentially harmful practices, cooperate with the investigations, and adopt measures to avoid repeating misconduct. In addition, the company committed to pay an amount of BRL 5.602.909,02 to the Fund for De Facto Joint Rights (FDD).  

Commissioner Victor Oliveira Fernandes, rapporteur for the case, concluded that the agreement complies with legal requirements, and contributes to the effectiveness of competition policy. “The proposal is timely, suitable, and sufficient to mitigate future competition risks, preserving the soundness of the market in question,” he stated.