CADE’s General Superintendence extends precautionary measure concerning the investigation of fuel cartel in the Federal District

On October 7, The General Superintendence of the Administrative Council for Economic Defense – CADE, extended for 180 additional days a precautionary measure concerning Cascol Combustíveis para Veículos Ltda. in a proceeding that investigates a fuel cartel in  the Federal District (Administrative Inquiry 08012.008859/2009-86). The decision was approved by the company, who agreed with the extension of the legal measure that would be concluded on October 9. 

On January, CADE has appointed a provisional administrator to manage Cascol’s gas stations. The administrator is responsible for managing the Cascol Group since April. The decision to extend the deadline maintains the previous conditions and the same administrator.

The extension of the precautionary measure is justified by the ongoing status of the investigations, which are being conducted by the Federal Police and by the Prosecution Service of the Federal District (MPDFT, for its acronym in Portuguese) as well as by the Administrative Inquiry held at CADE. The Federal Police is expected to conclude its analysis on the seized evidence during the dawn raids conducted within the Dubai Operation.

In this context, The General Superintendence understood that is important to maintain the aforementioned precautionary measure until the investigations conducted by the Federal Police, by the MPDFT and by CADE reach an advanced stage. Such measures protect investigations and help to preserve competition in the local market.

Moreover, CADE’s General Superintendence has also considered that the changes in the Cascol Group’s policies conducted by the provisional administrator are still underway.  A shift in the company’s policy implemented by the new administration could entail uncertain consequences in the market and in the management of the company.

Finally, CADE determined the data already collected over the last months concerning the fuel market and the reports produced by the provisional administrator in the period to be sent to CADE's Department of Economic Studies for an in-depth assessment of the current situation of the fuel sector in the Federal District.

The technical note that shows the reasons of the extension of the precautionary measure is available here.