Cade’s General Superintendence suggests punishing executives for cartel in the compressors for refrigeration market

The General Superintendence of the Administrative Council for Economic Defense – Cade suggested the condemnation of three executives for cartel practices in the national market of compressors for refrigeration, equipment used in the production of fridges, freezers and air conditioners. The General Superintendence official opinion was published in the national gazette on Thursday (29/11). The case now goes to trial before the Tribunal.

According to the General Superintendence, the practice deceived consumers in Brazil and other countries in the period from 1996 to 2008. Between 1996 and 2004, the cartel was active mainly in Brazil, then it expanded worldwide, especially in Europe and North America.

The administrative proceeding begun in July 2009 out of the evidence brought by a cartel leniency agreement – used so a member of any anticompetitive practice denounces the violation and cooperates with the investigation in exchange for penalty reduction. In February 2009, dawn raids in offices of companies and in residences of executives were conducted to collect further evidence.

The General Superintendence’s official opinion recommended the dismissal of the charges against Danfoss A/S, ACC - Appliances Components Companies S.p.A. and Panasonic Electric Works Co. Ltd.. The understanding was that the participation of these companies in the cartel was limited to other countries, with no impact in Brazil.

The General Superintendence also suggested the dismissal of the case against other parties because they had signed leniency or cease the practice agreements with Cade. These agreements resulted in the payment of more than USD 104 million for infractions.