CADE's investigative arm recommends convicting possible invitations to cartelization in the ethanol market

In an order signed on 24 March, the Office of the Superintendent General of CADE recommended convicting the company Miriri Alimentos e Bioenergia and its chief executive officer for encouraging cartelization in the Brazilian market of production and selling of ethanol.

Miriri Alimentos e Bionergia is a major sugar-energy company in the Northeast region of Brazil that operates in the production and processing of sugar cane to manufacture ethanol, sugar, and distilled beverage on an industrial scale.

Based on the authority’s investigation, during an event attended by several players from the production and distribution chain of ethanol, the CEO of Miriri invited attendants to control product supply strategically in the sector.

According to the investigative arm of CADE, it is a harmful practice with the potential to change market characteristics artificially, leveraging Miriri’s market power and influencing homogeneous behaviour by rivals to the detriment of consumers and competition.

The Office of the Superintendent General has submitted the case to the Tribunal of CADE to render a final decision. Based on the Brazilian antitrust legislation, if the Tribunal finds the parties guilty, the company may pay fines summing up to 20% of its revenue in the year before the administrative proceedings, whilst its administrator may undergo fines ranging from 1% to 20% of that applied to the company.