Brasília, December 11, 2025 — Brazil’s CADE has opened an administrative proceeding to investigate an alleged cartel involving 24 companies in the market for orthotics, prosthetics, and special medical materials, covering a period from at least 2013 to 2023 and spanning multiple Brazilian states.
The investigation follows Operation Escoliose, carried out in July 2023 in cooperation with the Public Prosecutor’s Office of Rio Grande do Norte. According to CADE, the suspected cartel involved coordinated pricing through so-called “cover bids,” market allocation arrangements, and rotation of winning companies, affecting both private healthcare markets and public procurement tenders.
CADE said the probe targets 24 companies and 13 individuals. The authority alleged that the conduct may have distorted competition in the supply of orthotics, which are external support devices, and prosthetics, which replace or compensate for missing or non-functioning body parts.
Under the administrative proceeding, the parties under investigation will have the opportunity to submit defenses, request evidence, and nominate up to three witnesses. If the allegations are upheld, CADE’s tribunal may impose fines of up to 20% of a company’s gross turnover. Individuals may face fines ranging from BRL 50,000 to BRL 2 billion.
