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CADE signs settlement agreement in alleged international cargo freight cartel

Cease and Desist Agreement

The contribution amount to be paid by the commited investigated parties reaches BRL 7.4 millions
published: Jan 24, 2014 10:00 AM last modified: May 02, 2016 03:32 PM

The Administrative Council for Economic Defense – CADE signed, 23 January 2014, a Cease and Desist Agreement (TCC, for its acronym in Portuguese) within the proceeding that investigates an alleged international cartel in the market of international logistics services including maritime and air freight, when Brazil is the origin or the destination (Administrative Proceeding no. 08012.0011836/2009-08). CADE signed the agreement with Expeditors International of Washington, Expeditors International do Brasil Ltda, and an individual, who have committed to cease the investigated practices, and to pay an amount of almost BLR 7.4 millions as pecuniary contribution.

The investigation of an alleged cartel began in 2010, following the signature of a Leniency agreement – which allows the penalty reduction or forgiveness of the participant that denounces the cartel practices and produces evidences to the proceeding. The case remains under procedural instruction at CADE’s General Superintendence.

“This heavy amount of pecuniary contribution at such an earlier stage of the administrative process represents a significant acceleration on the prosecution of the implicated, been undeniable the effectiveness gain brought by the TCC to the Brazilian anti-cartel enforcement policy”, said Reporting Commissioner Ana Frazão.

This is the second agreement signed since the new regulation took effect, in 2013. According to the new TCC negotiation policy in cartel investigation, the parties must admit the participation at the investigated conduct and contribute producing evidences, in return for the pecuniary contribution reduction, which is set out according to the previously established rates in CADE’s Internal Regulation.

“The result of such change is agreement settlement policy, more consistent, more predictable, and more aligned with international best practices”, said Reporting Commissioner Ana Frazão. “The recent change represents an update of the settlement policy’s basics parameters, based on convenience or opportunity from the experience accumulated by the Council and by international best practices”, she stated.