In a significant ruling against anti-competitive practices, Brazil’s Administrative Council for Economic Defense (CADE) has convicted two individuals for their involvement in a cement and concrete sector cartel. The decision, handed down during the 242nd ordinary trial session on Wednesday (February 12), results in fines exceeding R$10 million (Approx. $2 Million USD).
The case, stemming from administrative process no. 08012.011142/2006-79, was initiated in 2016 after new evidence surfaced implicating individuals in the so-called “Cement Cartel.” This scheme, orchestrated by companies, associations, and executives within the industry, involved coordinated efforts to divide market territories, manipulate bid prices, and stifle competition. These practices ultimately restricted market entry for new competitors and harmed consumers.
The investigation uncovered a pattern of email exchanges and meetings among competitors aimed at enforcing the cartel’s anti-competitive strategies. The conviction, led by rapporteur Carlos Jacques, was unanimously upheld by the Administrative Court, emphasizing the severity of the violations.
The ruling is based on Article 36, items I to IV, in conjunction with §3, I, items a, b, and c, of Law No. 12,529/2011. The convicted individuals must pay their fines within 30 days following the publication of the decision in the Official Gazette of the Union.
CADE’s decision underscores its commitment to preserving market competition and deterring anti-competitive behavior. The full case details are accessible via process number 08700.003528/2016-21.
