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CADE convicts a cartel in the market of PVC products to pay a fine of BRL 19.2 million

Administrative Proceedings

Competitors held agreements to coordinate price increase of materials, harming consumers
published: Sep 24, 2020 06:49 PM last modified: Sep 24, 2020 06:49 PM
by International Unit

In the hearing of this Wednesday (23 September), the Administrative Council for Economic Defence (CADE) convicted five companies and two individuals for a cartel in the national market of ceilings, room divider, folding doors and other products made of PVC. Fines applied sum BRL 19.2 million.

According to the rapporteur commissioner on the case, Sérgio Ravagnani, evidences show that partners of competing companies exchanged emails with sensitive information and made agreements to increase prices jointly. The anticompetitive behaviours occurred between March and October 2010, and were reported to CADE by means of a leniency agreement signed with the company BR Plásticos Indústria.

The contacts among competitors focused on setting homogeneous strategies as to the percentage rise and price readjustment justifications for consumers. “Such exchange of information clearly aimed at a concerted action, and therefore, to define an agreement among competitors to artificially raise prices charged in the market,” stated Ravagnani.        

For the anticompetitive conducts, CADE convicted companies Bianchini Indústria de Plásticos (Plasbil), Indústria e Comércio de Plásticos Majestic, and Real PVC Forros to pay fines on the amount of BRL 14,162,095.40, BRL 2,469,769.01 and BRL 1,238,826.55 respectively. The companies Plásticos TWB (presently TWB Indústria e Comércio de Produtos Plásticos) and Pilaplast Indústria e Comércio de Plásticos (presently Pilaplast Negócios Imobiliários) will pay fines of BRL 586,742.30 and BRL 701,120.70 respectively.

Fines applied to the two individuals on the case sum a total of BRL 96,997.36.

Leniency and Cease and Desist Agreement (TCC)

Due to the statement of compliance with the leniency agreement obligations, the Tribunal of CADE unanimously decided to terminate the Government’s punitive action in benefit of the company BR Plásticos Indústria and one individual related to it.

Regarding the company Tigre Tubos e Conexões, the proceeding was dismissed in view of the complete fulfilment of obligations determined in the Cease and Desist Agreement (TCC). According to the agreement, Tigre committed to cooperate with the investigations and paid BRL 324,928.17 as a financial contribution. As for the individual who is the signatory of the TCC, the proceeding remains suspended until full compliance with the obligations is confirmed by the Tribunal. 

Case dismissal

CADE’s Tribunal has decided to dismiss the proceeding for the lack of evidences and time-barred for punitive claims for four individuals.

Access the Administrative Proceedings 08700.001422/2017-73.