General Superintendence releases negative opinion in four anticompetitive conduct cases
The General Superintendence of the Administrative Council for Economic Defense - CADE has recommended to the Tribunal the conviction of three administrative proceedings related to price fixing and possible formation of a cartel. On Friday (14/6), the official opinion was published in the Official Gazette, against an association of driving schools services of the Federal District (File No. 08012.000415/2003-15), six tourism associations (File No. 08012.000261/2011-63) and an association of security services and private security in the State of São Paulo (File No. 08700.000719/2008-21 PA).
On the same date, another Official Opinion was published suggesting the condemnation of 12 drugstores for the formation of cartel in Curitibanos, in the State of Santa Catarina, (File No. 08012.004365/2010-66).
In cases involving price fixing, the General Superintendence concluded that the practices were anti-competitive and harmful to consumers because of the preparation and disclosure of pricing tables to be followed by competitors.
As for the case that investigates the possible formation of cartel between 12 drugstores in the municipality of Curitibanos, the General Superintendence points out that the drugstores agreed to jointly develop a rotating schedule of discounts with each participant offering a 20 percent discount each week. The General Superintendence concluded that there was "setting of discounts, which ends up being reflected in the final price of the product as well as a division of the market based on the weekdays, practices that characterize the formation of a cartel."
The cases will go on for trial by the Tribunal of Cade, responsible for rendering the final decision. If convicted, investigated parties could face fines of up to 20% of its revenues.