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Cade condemns parking company for cartel

Cartel

The penalties were applied within the scope of an Administrative Proceeding for probing the cartel in the market of services contract for the operation and commercial exploration of parking lots in São Paulo
by Assessoria de Comunicação published: Aug 20, 2018 12:14 PM last modified: Aug 20, 2018 12:14 PM

The Administrative Council for Economic Defense (CADE, in its acronym in Portuguese) condemned the company Rod and its managing partner, Márcio Tabet, imposing fines in the values of BRL 437.018,47 and BRL 54.442,22, respectively. The conviction occurred within the scope of an Administrative Proceeding which probed the cartel in the market of services contracts for the operation and commercial exploration of parking lots in São Paulo.

In 2011, the United Nations Business Center (CENU, in its acronym in Portuguese) promoted a bid aiming to replace the current parking services provider, Allpark. Only a few companies were invited to participate in CENU bidding, among those Netpark and Rod, Allpark wasn't listed amid the invited companies. During the bidding process, Allpark kept operating the parking lot.

Rod and Allpark exchanged sensitive information by sharing the bid notice and coordinating the bid tenders presented to CENU. These conducts had the potential of maintaining or increasing the remuneration percentage of Allpark, as well as harm competitors. In September 2012, Allpark managed to renew the operation contract by the additional period of 60 months.

Commissioner Polyanna Vilanova stated in her review vote that: "I have concluded that the contacts established between representatives of Allpark, Netpark and Rod have a harmful potential and constitute a diffuse cartel regarding CENU's bidding. Although the coordination of the bid tenders was unsuccessful, given that the competitors did not present the discussed percentage, the potential to harm free competition resulting from these conducts is high".

CADE’s Tribunal decided, by unanimity, to file the process regarding Allpark and seven signing parties, given the fulfillment of the Cease and Desist Agreements (TCCs, in their acronym in Portuguese).

The Tribunal also decided to file the process regarding the represented parties Garage Inn, Multipark, Zig Park, and seven individuals, for the lack of evidence that showed their participation in the anticompetitive conduct related to CENU's private bidding.