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CADE investigates international cartel of airbags in Brazil

Staff Writer |
The General Superintendence of the Administrative Council for Economic Defense – CADE initiated, on 2 June 2017, an Administrative Proceeding to investigate an alleged international cartel, with effects in Brazil, in the market of airbag modules, seat belts and steering wheels.

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The five companies under investigation are Autoliv Inc., Takata Corporation, ZF TRW Active & Passive Safety Technology Division, Tokai Rika Co, Ltd. and Toyoda Gosei Co., Ltd.

According to a technical note of CADE’s General Superintendence, there is evidence that these companies may have fixed prices and commercial conditions engaging in cover pricing and jointly establishing level prices and discount percentages granted to car manufacturers.

Moreover, there is evidence that the companies agreed to divide the market, allocating new business opportunities (sourcings) and/or complying with the deals already established by each company (resourcings).

In addition, the companies might have shared with each other commercially sensitive information, such as prices, volumes and production capacity.

According to the General Superintendence, it seems that at least 29 individuals, linked to the companies, were implicated in the cartel, carrying out this anticompetitive practice through e-mails, telephone calls and face-to-face meetings between at least 2005 and 2011.

After the initiation of the Administrative Proceeding, the defendants will be notified in order to present their defenses.

Once the initiation phase is concluded, the General Superintendence will issue an opinion and forward the case to CADE’s Tribunal, which is responsible for the final decision.

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