CADE signs seven agreements in cartel investigations

The Administrative Council for Economic Defense – CADE approved seven Cease and Desist Agreements (TCC for its acronym in Portuguese) in cartel investigations at the judgment session of 10 December 2014. In total, BRL 45,2 million will be collected to the Diffused Rights Fund (FDD for its acronym in Portuguese).

According to the agreements, the parties admitted their participation in the investigated conduct, committed to cease the practice and to collaborate with the agency to clarify the facts.

The settlements were negotiated by CADE’s General Superintendence, responsible for opening administrative proceedings and enquiries. These proceedings will be suspended in regards to the signatory parties until the foreseen obligations are declared fulfilled.

In 2014, in total, 22 TCCs were signed in cartel investigations. Seven of them referred to big rigging cases. The collected pecuniary contributions in these settlements totalize BRL 153.4 million.

Administrative Enquiry no. 08700.003018/2014-91 – Three TCCs were signed in this enquiry that investigates a cartel in the market of resins for coatings and composites. This was the first case in which the settlement negotiation was done before the opening of an administrative proceeding by CADE.

In May 2014, the General Superintendence carried out dawn raids in offices and headquarters of ten companies aiming at collecting evidence to clarify the facts.

The first settlement was signed with the companies Ashland Polímeros do Brasil S/A and Ashland Inc, which must collect pecuniary contribution of BRL 11.3 million. The second agreement was signed with CCP Composites e Resinas do Brasil Ltda. and two individuals that must collect BRL 10.5 million in total. At last, Novapol Plásticos Ltda. committed to collect BRL 13.7 million as pecuniary contribution.

Administrative Proceeding no. 08012.005255/2010-11 – CADE settled with Infineon Technologies AG and four individuals in an investigation of an international cartel in the market of dynamic random access memory (DRAM). According to the TCC, the parties must collect BRL 703,000 in total.

Administrative Proceeding no. 08012.001377/2006-52 – Four individuals signed a TCC in this proceeding that investigates a cartel in the market of products for the transmission and distribution of electric energy in the Brazilian electricity system. The signatory parties must collect BRL 300,000 to the FDD.

Administrative Proceeding no. 08012.004280/2012-40 – The company Alsar Tecnologia em Redes Ltda and two of its directors committed to collect BRL1.1 million by signing a TCC in the proceeding that investigates a bid rigging cartel that operated in public procurements held by public bodies and companies of the Federal District for the provision of outsourced information technology services.

Administrative Proceeding no. 08012.001183/2009-08 – CADE signed TCCs with Panalpina Ltda. and Panalpina World Transport Ltd, and with two individuals in this investigation of cartel in the market of international air and ocean cargo freight. The total amount to be collected is BRL 7.4 million. The investigations started after a leniency agreement was signed.