General Superintendence asks for condemnation of doors and metal detection systems cartel

The General Superintendence of the Brazilian Council for Economic Defense – CADE recommended in a report published on the Federal Official Journal of 30 December 2013, the condemnation of ten executives and employees and four companies, producers of doors and metal detection systems, for cartel conduct in public and private procurement processes on the mentioned market. The case is to be tried by CADE’s Tribunal.

According to the General Superintendence, the companies Beringhs Indútria e Comércio Ltda., Ieco Desenvolvimento e Indústria de Máquinas e Aparelhos Ltda., Mineoro Indústria Eletrônica Ltda. and MPCI Metal Protector Ltda. would have operated a cartel since 2002.

The report points to the existence of unlawful combinations to share the market and clients between the companies. It also shows price fixing conducts and arrangement that would determine who would be the winner of the procurement processes by public and private banks. 

To the General Superintendence, the anticompetitive practice affected public and private banks that acquired these products to be installed in their branches. The investigation revealed also that Banco do Brasil would have been the most affected by the cartel.

The investigation began with a complaint received in 2008 and, in the same year, a search and seizure operation was held in the headquarters of the four investigated companies. From the analysis of the seized material, the General Superintendence confirmed the cartel existence and recommended to the Tribunal the condemnation of the investigated companies.

By a judicial decision, the documentation seized is restricted to CADE’s and the parties’ access.

If condemned, the companies could pay fines of up to 20% of its income in the previous year of the proceeding (Administrative Proceeding nº 08012.009611/2008-51). The executives and employees of these companies are subjected to the payment of fines of up to 20% of those imposed to the companies.