Dental council from Minas Gerais signs agreement with CADE

This Wednesday (2 August 2023), the Tribunal of CADE signed a cease and desist agreement with the dental council of the state of Minas Gerais (CRO/MG) in a case that investigates the prohibition of discount cards for dental services.

The scrutiny began with a complaint made by a dental clinic from the city of Capelinha, Minas Gerais, which reported that the dental council launched a disciplinary proceeding against it to prevent the business from accepting a discount card named “Cartão Mais Solidariedade”. In its defence, the association claimed that the Dentistry Code of Ethics, issued by the Brazilian Dental Council (CFO), prohibits professionals from granting such discounts.

In August 2022, the Office of the Superintendent General of CADE launched an administrative proceeding to examine the conduct, in which it imposed an interim measure against the dental councils so that they would immediately cease any conduct torwards prohibiting dental clinics from accepting the discount cards or dentists from setting prices or commercial conditions, under pain of daily fines. Thus, the disciplinary proceedings of the dental council were suspended due to the interim measure, which is still in force.

Under the cease and desist agreement, the dental council of Minas Gerais is to pay BRL 225,000 in financial contributions. In addition, the dental council commits to cease and dismiss the disciplinary proceedings and to broadly disclose the agreement signed with CADE. CADE is still investigating the case but suspended it in relation to the dental council of Minas Gerais until the association meets the agreed obligations.

“To prevent third parties from giving discounts in the provision of services is a potentially illegal practice that can be regarded as an antitrust violation if exerted by players with market power,” explained the case rapporteur, Commissioner Gustavo Augusto. According to the Commissioner, the professional councils are assumed to have market power given their powers to apply disciplinary sanctions.

Access Case no. 08700.002535/2020-91