Federal Prosecutor’s Office of the state of São Paulo reports 11 individuals in cartel investigated by CADE

On 5 October 2015, the Federal Prosecutor’s Office of the state of São Paulo (MPF/SP in its acronym in Portuguese) reported to the Brazilian Judiciary 11 individuals for being involved in alleged cartel in the national market of ceramic ovenproof rolls (Criminal File no. 0012178-18.2015.403.6181). CADE’s General Superintendence has been already investigating the infringement since last July, when the Administrative Proceeding no. 08700.004627/2015-49 was opened.

The antitrust agency investigates the participation in the cartel of the companies Cerâmica e Velas de Ignição NGK do Brasil Ltda. (NGK), Estiva Refratários Especiais Ltda. (Estiva), Incer Indústria Nacional de Cerâmica Ltda. (Incer) and Refratários Paulista Indústria e Comércio Ltda. (RPA), besides commercial representatives and employees of these companies, including the individuals reported by MPF/SP.

Ceramic ovenproof rolls are used in ovens for ceramic coatings and have the function of transporting and holding these coatings in a way that they move over the rolls during the procedure. The agreement among competitors in this market would have affected the production chain of ceramic coating, which includes tile floors, wall and frontage coatings, porcelains and roofing tiles.

The investigations of the two bodies point out to sound evidence that companies, through their employees and commercial representatives, as well as with the assistance of the coordination of the National Association of Ovenproof Rolls Manufacturers (Anafar in its acronym in Portuguese), would have divided the market, establishing and monitoring client’s allocation charts and participation goals in the market, as well as shares for each cartel member, besides fixing prices and exchanging sensitive commercial information.