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Cade signs three new agreements in cartel investigations

TCC

Agreements signed with Samsung and LG refer to the inquiry of a LCD international collusion
published: Aug 21, 2014 09:00 AM last modified: Apr 28, 2016 10:55 AM

The Administrative Council of Economic Defense - CADE validated, on 20 August 2014, three Cease and Desist Agreements (TCC for its acronym in Portuguese) in cartel investigation cases. Two of the agreements refer to a possible international cartel, with effects in Brazil, between manufacturers of thin film transistors for liquid crystal display (TFT-LCD), a product used in the manufacturing of computer screens, notebooks, tablets, mobile phones and televisions. 

According to the TCCs, Samsung and LG will collect BRL 8.9 million and BRL 33.8 million, respectively, as a pecuniary contribution. The companies had to confess their participation in the investigated practice and committed themselves to cease the conduct. The agreement also demands the parties to cooperate in clarifying the facts (Administrative Proceedings no. 08012.011980/2008-12 and 08012.008871/2011-13).

The third TCC was signed with Pharma Nostra and three employees of the company. It concerns an alleged big rigging cartel that performed its activities in public bids held for the acquisition of inputs of antiretroviral drugs (Administrative Proceeding no. 08012.008821/2008-22). In addition to the obligations to cooperate, to cease the conduct and to recognize the participation in the collusion, the company and the employees will collect the total of BRL 331.9 thousand to the Diffused Rights Fund (FDD for its acronym in Portuguese).

The three agreements meet the new regulations for the signature of TCCs established by CADE in March 2013. According to the new rules, parties must admit their participation in the investigated conduct whenever the proceeding regards to a cartel investigation.

Another change was the possibility of CADE’s General Superintendence to negotiate the terms of the agreement when the proceedings are still under investigation, as it happened with the three TCCs approved. Before the new rules, only CADE’s Tribunal had this assignment.

During the judgment session, CADE’s President, Vinicius Marques de Carvalho, highlighted that 11 agreements were already signed under the new policy. "In the beginning, there was concern about the viability of the new resolution. This number shows that the type of procedure adopted brings results near to CADE’s expectations", he stated.