Companies are to pay BRL 5.9 million for gun jumping

On 28 August, The Administrative Council for Economic Defense (CADE) imposed fines to six companies in the Brazilian automotive industry for completing a deal without the authority’s clearance, a practice known as gun jumping.

According to the filed petition, the case concerns eight transactions carried out by Grupo Dahruj in the last five years. In July 2020, the Office of the Superintendent General of CADE launched an administrative procedure to investigate the case.

Upon request, the parties provided further information on the development of the transactions from the past five years.

Commissioner Gustavo Augusto, rapporteur of the case, highlighted that the Office of the Superintendent General unconditionally cleared all notified transactions, without any request for adjudication or objection.

According to him, “it is not up for debate whether or not the parties committed a violation, but the appropriate fine calculation, since the Tribunal of CADE has already reviewed the case in the Hearing of February 2024.”

Following the vote of Commissioner Gustavo Augusto, the Tribunal agreed that the firms committed a violation and ratified the agreement.

The companies Automec, Andreta, Tempo, Dahruj, Arguri, and Mais Distribuidora are to pay BRL 5.9 million in financial contributions to the Fund for De Facto Joint Rights (FDD) of the Brazilian Ministry of Justice and Public Security (MJSP).

For more information, access Case no. 08700.003447/2020-15.