Bill to penalize cartels postponed for the second time in Senate commission

By ETCO
24/06/2018

The vote on a bill that aims to create incentives for companies injured by cartels to seek justice has been postponed twice.
The text would be considered at the Economic Affairs Commission last week, but, with the truckers' stoppage, it was rescheduled this Tuesday (5). There was not enough quorum of senators on the second date, and the bill was not voted on.

The proposal has the report of Senator Armando Monteiro (PTB-PE) and should be ruled for the third time on Tuesday (12), according to the politician's office.
If approved by 14 votes in the committee, it goes straight to the Chamber of Deputies. Under the rules of the project, a company that has suffered damage from a cartel may claim in court twice as much damage as it had in compensation.
The prescription period increases and becomes five years after the judgment of Cade (Administrative Council for the Defense of Competition). The agency only applies fines that go to the Treasury, related to diffuse interests. Justice is the one who determines the compensation to companies that were victims of the cartels.

CADE actions on carteis_grafico 1

CADE actions on carteis_graf2

The text creates the guardianship of evidence: if there is Cade's judgment on the formation of a cartel, the Justice may already consider the issue decided. The project is positive, but it can be improved, says Bruno Drago, a lawyer at Demarest: “The possibility of compensation equivalent to twice the loss could also apply to the conduct of monopoly companies”.
The creation of mechanisms for companies to seek the application of rules is a trend, says Edson Vismona, president of ETCO (Instituto Brasileiro de É).

“Inspection and reinforcement by peers are discussed, pointing out deviations and asking the authorities for measures”.