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CADE condemns leaking of sensitive information


Condemned individual to pay BRL 50,000 for revealing restricted information
by Assessoria de Comunicação Social published: Jun 07, 2017 06:00 PM last modified: Jun 07, 2017 06:00 PM

During the judgment session of 7 June 2017, the Tribunal of the Administrative Council for Economic Defense – CADE imposed, for the first time, a fine to an individual for leaking sensitive information about an ongoing investigation conducted by the authority.

The Administrative Proceeding for the Imposition of Incidental Procedure Sanctions (n° 08700.002388/2017-54) was reported by Commissioner João Paulo de Resende which imposed a fine of BRL 50,000  to the individual implicated in another case being investigated by CADE. This individual is implicated in the proceeding n° 08700.003390/2016-60 - regarding an alleged cartel in the market of PVC pipes and fittings – and was found to have leaked restricted information concerning this investigation.

The information was revealed during a meeting of the Comitê Técnico da Associação Brasileira dos Fabricantes de Materiais para Saneamento (Asfamas in its acronym in Portuguese), on 18 May 2016. The meeting was attended by sixteen participants. 

According to the Reporting Commissioner, the conduct was reckless.  He stated further that “the restrict information was released to a large group of people linked to the market in  which the activities being investigated might have occurred. In that sense, the potential harm to the investigation and to the instruction of the case is clear. This is a serious infraction which should be punished”.

Commissioner Resende has also highlighted that the information leaked in the meeting is classified and was only provided to the individual, because he was one of the defendants of the case in question. The information was given to him, so he could be able to exercise his right of full defense.