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CADE signed agreements in cartel investigation in the market of automotive spare parts

Cease and Desist Agreements

TCCs will collect more than BRL R$2.8 million
by Assessoria de Comunicação published: May 10, 2018 05:33 PM last modified: May 10, 2018 05:33 PM

The Administrative Council for Economic Defense (CADE, in its acronym in Portuguese) homologated two Cease and Desist Agreements (TCCs, in its acronym in Portuguese) in Administrative Proceedings that probe into alleged cartel practices in the automotive spare parts market. As a result of the agreements, BRL 2.8 million will be collected.

As stated in the TCCs signed with CADE, negotiated within the General Superintendence, the parties admitted having participated in the investigated conduct. They committed to cease the practice and cooperate with the antitrust authority in the elucidation of the facts.

TRW Automotive and an individual linked to the company signed the TCC in an investigation of collusive practices in the production and selling valves for engines, valve guides, and valve seats, in Brazil and Argentina, resulting in effects on the independent national market spare parts (Administrative Proceeding 08700.002904/2017-41).

According to the opinion that initiated the case, there is evidence that some companies fixed prices and commercial conditions, divided market among competitors and shared information that was sensitive commercially and competitively, aligning raises in prices, combining percentages and scheduling price adjustments.

The pecuniary contributions set in this Cease and Desist Agreement total BRL 865.7 thousand. From this amount, a BRL 50 thousand payment is attributed to the individual that signed the agreement.

In its turn, Leoni Wiring Systems France Sas and an individual linked to the company signed a TCC with CADE in a proceeding that investigates an alleged cartel in the markets of car wire harness and electric and electronic components - which include electronic control units, junction boxes, automotive dashboards and displays, systems with ABS sensor cable, high voltage cables, components for electric and hybrid vehicles, antenna and connectors (Administrative Proceeding 08700.009029/2015-66).

The investigations point out evidence of price and market conditions fixing, sharing sensitive commercial information, resource allocation of customer’s biddings and market sharing among competitors.

In this agreement, the pecuniary contribution levied totals BRL 2.01 million, from which BRL 68 thousand must be paid by the individual.

The investigation proceedings will be suspended relative to the signatories of the TCC until the fulfillment of the envisaged obligations is declared.