Office of the Superintendent-General of CADE recommends convicting cartel in procurement for Angra 3 power plant services

The Office of the Superintendent-General of CADE submitted for adjudication by the Administrative Tribunal an administrative proceeding regarding an alleged cartel in Eletronuclear’s procurement for electromechanical assembly services of the Angra 3 power plant in Rio de Janeiro.

Launched in November 2015, the case gathered evidence resulting from one leniency and three cease and desist agreements involved parties signed with CADE, upon which the signatories collaborated with the investigations by admitting participation in the conduct, providing information and presenting evidence.

The investigation concluded that, from late 2008 to 2014, the cartel affected the hiring process of technical services specialised in electromechanical assembly supply of materials and components for Unit 3 of the nuclear power plant Almirante Álvaro Alberto, in Angra dos Reis, Rio de Janeiro. The collusive behaviour affected procurements estimated at BRL 3 billion (prices of February 2013).

According to the Office of the Superintendent-General, the antitrust violation consisted of rivals’ agreements on fixing prices, conditions and benefits, bid suppression, and market division through formal consortia. In addition, cartelists shared competitively sensitive information aiming to prevent competition. 

Once found the irregularities, Eletronuclear suspended the contract and eventually terminated it in 2017, when less than 10% of it had been implemented.

CADE’s investigative arm issued an opinion suggesting the conviction of four companies and ten individuals involved in the anticompetitive behaviour. The Tribunal of CADE is to adjudicate and give a final decision on the case. If the Tribunal finds the parties guilty, the companies may pay fines summing up to 20% of their revenue in the year before the launching of the administrative proceeding. The individuals, in turn, are subject to fines ranging from BRL 50,000 to BRL 2,000,000.

Access Case no. 08700.007351/2015-51.