Brazil: CADE goes after two pipe and fittings cartels

Brazilian competition regulator CADE has announced two new administrative proceedings to investigate alleged cartel offenses in the national market of pipes and fittings. This material is applied in the construction sector to enable the installation of pipelines, fiber optic cables and pipes in general.

The first investigation will look into an alleged cartel in the domestic market of PVC pipes and fittings, with evidence that the cartel affected at least two types of clients. First, the conduct affected public bids launched by public companies in the sewerage and water infrastructure sector. Second, the conduct affected private companies operating with civil construction and installation services. The second administrative proceeding will investigate an alleged cartel in the national market of PEAD pipes and fittings. there is evidence that the cartel has affected private bids in the gas sector.

In both cases, the General Superintendence’s preliminary note contains evidences of price-fixing agreements and client division orchestrated during meetings and telephone calls between management-level employees of these companies, with the authorization of board members. In total, 18 companies and 46 people at various levels of management have been identified.

Full Content: CADE

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