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Cade investigates possible cartel for passenger freight in Campinas-SP

Cartel

After, the General Superintendence may send the case for trial by the Cade’s Tribunal.
published: Nov 29, 2012 10:00 AM last modified: Apr 14, 2016 10:21 AM

The General Superintendence of the Administrative Council for Economic Defense - CADE, on Thursday (29/11), started an administrative proceeding to investigate a possible cartel in the market for transportation of passengers under freight regime Campinas, São Paulo State. Such service is usually hired by private companies or public institutions that provide transportation to their employees.

The administrative proceeding was initiated based on documents issued by the Special Action Group for fighting against Organized Crime (GAECO/Núcleo Campinas) of the São Paulo State Prosecutor’s office.

According to the investigation, it seems to exist evidence that several companies and executives, with the support of the freight companies Union, have exchanged information and coordinated to fix prices, to have advantages in bids and to divide the market of freight for collective transport of passengers.

The General Superintendence preliminary findings indicate that the actions of the possible cartel would have caused damage to all private companies in the Campinas region that hired such transportation services. In addition, the practice also would have harmed public institutions whilst it eliminated the competitive nature of bids conducted for hiring those charters.

One of the institutions most affected by the possible cartel was the State University of Campinas (Unicamp) that made several bids for hiring charter transportation services to meet staff and students needs. There are indications that the investigated companies acted in collusion, for at least ten years, at bids promoted by the University.

With the administrative proceeding in place, the accused companies will be notified of the acts and given time to present their defense. After, the General Superintendence may send the case for trial by the Cade’s Tribunal.