The General Superintendence of the Administrative Council for Economic Defense (SG/CADE) has opened an investigation into the use of pricing software in the Brazilian fuel market, suspecting it may promote anti-competitive behavior.
The probe targets a software company offering algorithms to gas stations that dynamically adjust fuel prices based on factors like cost, volume, and competitors’ prices. The software purportedly discourages individual price-setting by station owners, potentially reducing price competition. A fuel union allegedly recommending the software to its members is also under scrutiny.
SG/CADE is examining whether the tool’s design fosters uniform pricing practices among competitors, violating competition laws. The investigation will determine if these actions have undermined fair competition in cities across Brazil.
The implicated parties have been notified and will present their defenses. If found guilty, the companies could face fines ranging from 0.1% to 20% of their revenue, alongside other penalties.
The case highlights growing global concerns over pricing algorithms. While not inherently illegal, these tools can facilitate coordinated market behavior, prompting regulatory scrutiny. SG/CADE reaffirmed its vigilance against the misuse of such technologies to ensure fair market competition.
The final decision will rest with the CADE Tribunal after the General Superintendence’s findings are reviewed.
