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Brazil: Unprecedented cement crackdown to last years

By  |  January 26, 2014

Brazil’s antitrust regulator CADE has announced unprecedented fines it plans to impose upon six cement companies for alleged cartel behavior, but according to reports, such a major case for the regulator is likely to drag on for years.

The six companies, which collectively control nearly 90 percent of Brazil’s cement market, are accused of colluding to hike prices after an eight-year probe found cement prices rose 66 percent in the last decade.

CADE is now planning to impose $1.3 billion in fines on the company, as well as required divestitures; if the regulator’s board agrees to the penalties, reports say it will be a landmark crackdown by the authority.

But such a significant case for CADE also comes with the threat of litigation; should the companies engage in a legal battle to fight the fines, report say the case could drag on for years.

Full Content: Reuters

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