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Collusion between gas stations is dismantled by Cade, which applies million-dollar sanctions and reinforces commitment to market competitiveness

Written by Bruno Teles
Published 29/10/2024 às 00:45
Collusion between gas stations is dismantled by Cade, which applies million-dollar sanctions and reinforces commitment to market competitiveness
Cade's action against gas stations exposes illegal practices (Image: Reproduction)

In a true saga of the fuel market, Cade dealt a firm and direct blow to the formation of a cartel between gas stations in the Federal District. It began with complaints made by the Legislative Assembly of the Federal District and led Cade to open an extensive investigation, revealing coordinated practices to manipulate fuel prices. And the outcome was resounding: strict sanctions and a fine exceeding R$90 million, placing those involved in a delicate position and reconfiguring the rules of competitiveness in the sector.

It all started with a series of indications of irregularities that reached Cade, raising suspicions that some gas stations were acting in a coordinated manner to inflate prices in the region. In 2015, the Federal District Court of Justice authorized wiretaps, which proved a scheme of collusion between companies to control the amounts passed on to consumers. With that, Cade, together with the Federal Police and the Public Prosecutor's Office of the Federal District, launched the so-called “Operation Dubai”, an offensive that allowed the collection of essential evidence to establish the crime of cartelization.

Cade's actions were meticulous, and the search and seizure warrants confirmed that the gas stations involved were acting as a network, eliminating competition and fixing prices. This operation was considered a milestone for the actions of SG/Cade (Cade's General Superintendence) in combating anti-competitive practices, highlighting the agency as a key player in maintaining market transparency.

Consequences for gas stations and their managers

The evidence resulting from the investigation allowed CADE to adopt a series of punitive measures. In 2016, it was determined that the directors of the companies under investigation would be replaced, and they were removed to allow for a more neutral and provisional administration during the ongoing process. The following year, CADE signed a Cease and Desist Agreement (TCC) with the gas stations involved, which forced them to restructure their business practices and imposed a hefty fine of R$90 million.

Those measures were strategic to restore competitiveness in the market, with the aim of preventing those responsible from repeating cartel practices. In addition, the companies faced sanctions of up to 20% of their annual revenue, a severe blow that highlights CADE's seriousness in combating cartels, in addition to reinforcing the agency's commitment to the integrity of consumer relations in the fuel sector.

Direct impact on the consumer's pocket

Cartelization at gas stations has a direct impact on the price paid by the end consumer. When gas stations organize themselves to fix prices, consumers lose the competitive advantage and are forced to pay higher prices without any choice. This practice affects consumer confidence and destabilizes the economy, making intervention by entities such as Cade urgent and indispensable.

The expectation, with Cade's action, is that the market in the Federal District can become more competitive and fair, allowing fuel prices to reflect a true relationship between supply and demand. For Cade, this ideal scenario benefits the consumer and reinforces the commitment to ensuring a healthy economic environment, where abusive practices are neutralized.

What's Next: Judgment and Precedents

The case will now go to CADE's Administrative Court, where a rapporteur will be appointed to guide the judgment of the parties involved. The final decision will be crucial not only for gas stations in the Federal District, but also as a signal to other sectors of the market, showing that monitoring and enforcement of antitrust laws are priorities and non-negotiable.

This case marks another chapter in the history of Cade's actions, which, when investigating and combating cartel practices, reinforces the alert for other segments and protects the consumer from conduct harmful commercials.

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Rômulo
Rômulo
29/10/2024 08:13

We need to investigate in every state in the country. I believe this happens everywhere. Regrettable and revolting!

Narley Alfaro
Narley Alfaro
29/10/2024 09:24

This fuel oligopoly in the Federal District is strong and limitless. It was already fined in 2015, but it did not intimidate them. Logically, the stations should lose their concession and change owners immediately, and the former owners should be prohibited from operating in the fuel sector again.

Rodrigo
Rodrigo
29/10/2024 10:04

This will not lead to anything, a cartel is possible, corruption is also possible, vote buying is the same, they would only be arrested if they were dressed in green and ****, with a Brazilian flag in their hands and prospecting against the system... then yes it is ****...

Joe Underpants
Joe Underpants
29/10/2024 10:18

This happens in Belo Horizonte and the metropolitan region.
When questioned, the president of the gas station union stated that there is no cartel in BH, but rather an alignment of prices.
Now, what is this?
A few days ago there was a change in fuel prices.
Gasoline is at 6,17 or 6,39.
Is there no cartel?
That's the question that everyone wants to know!
In the case of diesel it’s the same thing, the variation is just a few cents…

Anthony of Oliveira
Anthony of Oliveira
29/10/2024 11:30

In Amazonas, especially in Manaus, there is a cartel, all gas stations, of all brands, charge the same prices.
Nobody does anything, because most of the posts are owned by politicians.
A shame.

Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 3.000 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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