CADE settles with individuals in the AmBev’s Tô Contigo case
Cease and Desist Agreement
The Administrative Council for Economic Defense – CADE, signed on 30 July 2014 a Cease and Desist Agreement (TCC for its acronym in Portuguese) with six individuals who would have participated in the development and implementation of the loyalty program Tô Contigo, created by AmBev – Companhia de Bebidas das Américas. The program was used by the company to offer discounts and bonus to points of sale in exchange of exclusivity or reduction in the sales of products of other competitors.
CADE condemned AmBev in 2009 for the practice of exclusivity requirement and determined, among other penalties, the closure of the program and the payment of a fine of BRL 353 million. In the occasion, CADE’s Tribunal determined the opening of the Administrative Proceeding no. 08012.010028/2009-74 to investigate the conduct of employees allegedly involved in the development and execution of the company’s loyalty program.
By the settlement signed with CADE, the individuals compromised to collect a pecuniary contribution that totalizes BRL 2 million.
“All the parties are applicants of the agreement, including those who have not been yet notified of the opening of the proceeding. Furthermore, all parties are demanded not to perform any of the investigated conducts in an irrevocably and undeniably manner. This means the case will be closed when the agreement is fulfilled”, stated CADE’s President, Vinicius Marques de Carvalho.
The proceeding against AmBev (Administrative Proceeding no. 08012.003805/2004-10) was opened by the former Secretariat of Economic Law of the Ministry of Justice in 2004, after a complaint presented by the competitor Primo Schincariol Indústria de Cervejas e Refrigerantes S/A.