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CADE Approved New agreement in Alleged Marine Hoses Cartel

Cartel

Parker ITR S.R.L will pay approximately BRL 5.1 million
published: Oct 24, 2013 10:00 AM last modified: Apr 12, 2016 02:22 PM

On October 23rd, The Administrative Council for Economic Defense - CADE - signed a Cease and Desist Agreement (TCC, for its acronym in Portuguese) with the Parker ITR SRL company, within the proceeding that investigates an alleged international cartel in marine hoses market with effects in Brazil. The marine hoses are used to transport oil and oil products to the interior of tankers or facilities on the coast and high sea.

This is the fourth TCC agreement signed within that proceeding (file no. 08012.010932/2007-18). In all of them, the signatories to the agreements confessed participation in the investigated practice.

According to the agreement, Parker consented to pay about BRL 5.1 million as a cash contribution. "I believe this agreement, following one made by Trelleborg, implies a greater contribution than the usually agreed with Cade, and it also proves to be more appropriate," stated the reporting commissioner Eduardo Pontual Ribeiro.

Understand the case - the investigation on the alleged cartel began in 2007, after the signing of a leniency agreement - which allows the reduction or cancellation of the penalties to the participant in a cartel that denounces the practice and presents relevant evidence to the investigation.

The investigation is searching for signs of alliance that might have fixed prices, market allocations, customers and volumes of marine hoses worldwide, including through the hiring of expert advice. The case involves 11 companies and other individuals.

In March 2013, two former company executives Dunlop Oil & Marine, from the United Kingdom, signed a TCC with the Brazilian antitrust agency. In 2011, Dunlop signed the second agreement, in which he agreed to pay more than BRL 16 million. The Bridgestone Corporation signed an agreement in 2008. In 2009, both companies Manuli Rubber Industries and Trelleborg Industries S.A. also signed a TCC with Cade. All agreed to pay the following values in this order: BRL 1.6 million, BRL 2.1 million and BRL 4.4 million.

The alleged cartel was also investigated by antitrust authorities from the United States, the United Kingdom, the European Union and Japan. Dunlop former executives were sentenced to prison and to pay a fine in both the United States and the United Kingdom.