São Paulo, February 28, 2025 – The Brazilian Administrative Council for Economic Defense (CADE) has fined two companies, Mayfran and New Hope, for engaging in a bid-rigging scheme in a 2019 electronic auction for school transport services in Fernandópolis, São Paulo. The scheme violated competition laws and harmed the integrity of the public bidding process.
The investigation began after a complaint from the São Paulo State Department of Education (Seduc-SP), which reported signs of collusion. CADE’s analysis found that both companies had used the same IP address during the bidding process, suggesting coordinated activity. Additional evidence included their bidding patterns and a prior business partnership, reinforcing suspicions of illicit communication.
According to case rapporteur Camila Pires Alves, while IP address similarities alone are not definitive proof of collusion, they serve as strong indirect evidence. She noted that companies accused of anti-competitive behavior are not required to disprove allegations outright but must provide reasonable explanations—something neither Mayfran nor New Hope successfully did.
CADE imposed fines totaling over R$1.6 million, with Mayfran fined R$763,903.92 and New Hope R$842,320.09. The case has also been referred to the São Paulo State Public Prosecutor’s Office for potential civil and criminal action, including damage recovery.
