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CADE signs new agreement in alleged international submarine and underground cables cartel

TCC

By the TCC, the party must collect BRL 65,000 as a pecuniary contribution
published: Oct 02, 2014 10:00 AM last modified: Apr 28, 2016 10:59 AM

At the judgment session of 1 October, the Administrative Council for Economic Defense – CADE signed a Cease and Desist Agreement (TCC for its acronym in Portuguese) with an individual for its participation in an alleged international cartel, with effects in Brazil, in the markets of manufacture and installation of high voltage underground cables and high and low voltage submarine cables (Administrative Proceedings no. 08012.003970/2010-10 and 08700.008576/2012-81).

The signature of the agreement was conditioned to the confession of participation in the collusion and to the collaboration with the ongoing investigation by the individual. According to the new policy for settlements in cartel investigations, the parties must confess their participation in the investigated conduct and must collaborate with the investigations by presenting evidence. In exchange, there will be a reduction in the pecuniary contribution, which value is collected to the Ministry of Justice’s Diffused Rights Fund – FDD for its acronym in Portuguese.

By the TCC, the individual commits to cease the investigated practices and to collect BRL 65,000 as pecuniary contribution. The settlement negotiation was conducted by CADE’s General Superintendence. 

It is estimated that the alleged cartel would have operated between the end of the 1970s and 2008. The investigations began in 2010, after the signature of a Leniency Agreement – which allows the reduction of the penalty or its termination to a cartel participant that reports the practice and presents proofs of it to the proceedings.

The administrative proceedings involve other companies and individuals and they will still be judged by CADE’s Tribunal.