Tribunal of CADE dismisses case in tire market

On 17 April, the Tribunal of the Administrative Council for Economic Defense (CADE) adjudicated the Case no. 08700.003266/2022-42, involving companies in the tire market. The Tribunal unanimously agreed with the vote of the rapporteur commissioner, Gustavo Augusto, and dismissed the case.

According to the rapporteur, after an in-depth analysis  of different nuances of the commercial practices found in the case, it was clear that there was a difference between the practices of Retail Price Maintenance (RPM) and the anticompetitive conduct of a cartel.

The rapporteur commissioner noted the lack of evidence for a cartel conviction. However, he expressed concern about the exchange of sensitive information between the companies and stressed that there is a  need to prevent practices that could harm competition, and consequently affect the consumers.

The decision does not end the matter, since it recommends caution and warns about the possibility of further due diligence to investigate possible anticompetitive conduct, suggesting that the priority is to preserve competition.

CADE's case law allows the suppliers of goods to suggest resale prices for resellers, unless there is an abuse of dominant position. The rapporteur highlighted that this could be followed by an independent investigation, if there was evidence of consumer harm.

 Access Case nº 08700.003266/2022-42