The General Superintendence of Brazil’s Administrative Council for Economic Defense (SG/CADE) has recommended (27 December) the conviction of a technology company and three individuals for their alleged involvement in an international cartel that impacted the global market for suspension assemblies, a critical component of hard disk drives (HDDs).
Cartel Activity
The suspension assemblies in question are integral to HDDs, which serve as data storage systems in various devices, including personal computers, MP3 players, car navigation systems, and mobile phones. According to SG/CADE, the accused parties engaged in anticompetitive practices such as:
- Dividing the market.
- Fixing prices in response to customer quotation requests.
- Exchanging commercially sensitive information.
These activities allegedly spanned from 2003 to April 2016 and were aimed at consolidating control over the suspension assemblies market globally, including in Brazil.
Next Steps
The case will now proceed to CADE’s Administrative Court, where it will be assigned to a rapporteur for further deliberation. A final decision will determine potential penalties.
Potential Penalties
If convicted, the company could face fines of up to 20% of its gross revenue. Additionally, the individuals involved may be personally fined up to 20% of the company’s penalty amount.
