CADE signs six Cease and Desist agreements in the midst of investigations on anticompetitive practices

During the hearing held on 27 July, the Tribunal of the Administrative Council for Economic Defense – CADE has validated six Cease and Desist agreements (TCCs, for their acronym in Portuguese) within the scope of  investigations regarding anticompetitive practices. Three of these agreements were unanimously approved by the Tribunal and the remaining three were approved by the majority. Altogether, the agreements shall provide BRL 3,6 million to the Fund for the Defense of Diffuse Rights – (FDD, for its acronym in Portuguese)

Five of the agreements were negotiated by CADE’s General Superintendence, who is responsible for conducting administrative proceedings. The agreement signed with Ediouro Publicações S/A was negotiated between the company and Commissioner Paulo Burnier’s  office. The administrative proceedings related to the signatories shall remain suspended until the fulfillment of the obligations foreseen in the agreement.

CADE’s acting president Márcio de Oliveira Júnior stressed that the agency’s TCC policy is part of the modernization of the Brazilian antitrust agenda and is in line with the best international practices. Mr. Oliveira has also emphasized that CADE’s Tribunal considers the TCC policy consolidated, stable and successful, leading to divergences exclusively on the estimation of financial contributions.

The acting president has also reaffirmed the Tribunal’s faith on the work developed by the agency’s General Superintendence regarding the negotiation of the agreements.

Agreements validated by unanimity

Administrative proceeding number 08012.005335/2002-67: CADE has signed a Cease and Desist agreement with Ediouro Publicações S/A within the scope of an administrative proceeding that investigates alleged infractions against the economic order. The infractions consisted in hindering the establishment and development of competitors in the Brazilian market of magazines by means of sham litigation, non-competition judicial agreements, and attempts to hamper competitors’ access to distributors.

 By means of the TCC, the company agrees to cease the investigated practices and to adopt measures in order to prevent further occurrences. Furthermore, the company agreed to pay a financial contribution to the FDD, amounting for BRL 1,7 million.

Administrative proceeding number 08700.004532/2016-14: Two individuals have signed an agreement with CADE in the midst of an administrative proceeding that investigates a cartel in the market for  products related to the transmission and distribution of energy in the electric power system. The administrative proceeding was initiated due to evidence of an alleged cartel organized by companies and individuals that are not part of the group that is investigated by the administrative proceeding number 08012.001377/2006-52, which also investigates the anticompetitive conduct.

Besides having acknowledged participation in the alleged conduct, the TCC signatories agreed to contribute to the investigations conducted by CADE and to pay BRL 120,000 to the FDD.

Administrative proceeding number 08700.000949/2015-19: the company Schaeffler Friction Products Gmbh, succeeding the represented Raybestos, has agreed to pay a financial contribution of approximately BRL 699,000 by means of a TCC signed with CADE in the context of an administrative proceeding that investigates an alleged cartel in the market of  antifriction bearings. According to the agreement, the signatory has acknowledged its participation concerning the anticompetitive conduct and has agreed to help with the ongoing investigations related to this matter.

Agreements validated by majority:

Administrative proceeding number 08700.010056/2014-09: three TCCs have been signed within the scope of an alleged cartel in the market of distribution of electrolytic capacitors and film capacitors. The agreements involve the companies Rubycon Corporation, Hitachi AIC INC., NEC Tokin Corporation and two executives linked to the latter company.

The TCC signatories acknowledged participation in the investigated conduct and have agreed to help with CADE’s investigations. Furthermore, the aforementioned companies will pay, in total,approximately BRL 1,1 million in financial contributions.