CADE authorizes signature of judicial agreement with TAM
The Tribunal of the Administrative Council for Economic Defense – CADE authorized, on 1 October 2014, the request by TAM Linhas Aéreas for a judicial agreement. The company challenged CADE’s sentence before the Judiciary to attempt to revert the penalties imposed by the antitrust authority in 2004.
The airline was condemned by CADE for participating in a cartel in the aviation market that took place in 1999. The illicit conduct also involved Transbrasil Linhas Aéreas, Viação Aérea Riograndense – VARIG S/A, and Viação Aérea São Paulo – VASP (Administrative Proceeding no. 08012.000677/1999-70).
By the agreement, TAM must collect a pecuniary contribution equivalent to the total of the fine imposed by CADE at the time the case was judged. It is also foreseen the payment of a guarantee deposit to assure the fulfillment of the other provisions determined by the sentence at the occasion. Both values were judicially deposited and totalize approximately BRL 1.2 million. The company also compromised to publish a statement in its website informing the agreement’s conditions for a one-month period.
According to CADE’s Chief Prosecutor, Victor Rufino, the approval of the request is the most efficient measure since ends an old dispute and satisfies CADE’s decision in reasonable conditions to both parties”.