Brazil’s antitrust authority is intensifying scrutiny of the country’s fuel retail market through a combination of enforcement actions and sector analysis aimed at addressing potential coordination risks.
The General Superintendence of the Administrative Council for Economic Defense (Cade) has opened an administrative inquiry to examine whether leaders of fuel retailers’ unions contributed to coordinated fuel price increases in several Brazilian states. The probe focuses on union representatives in Bahia, Minas Gerais, Rio Grande do Norte, and Rio Grande do Sul, while a related investigation is already ongoing involving the fuel retailers’ union in the Federal District.
The inquiry follows a report submitted by Brazil’s Ministry of Justice and Public Security alleging that union leaders made public statements indicating potential price adjustments. According to the complaint, such announcements could have signaled pricing intentions and encouraged retailers to align their prices. Competition authorities often treat public price signaling with caution because it may facilitate tacit coordination, allowing market participants to converge on similar pricing strategies without explicit agreements.
Cade’s investigative arm will now gather evidence to determine whether the conduct constitutes an anticompetitive practice. After the preliminary stage, the authority may decide whether to open a formal administrative proceeding.
In a related development, Cade has also addressed potential competition risks associated with pricing technology used in the fuel sector. The authority recently approved a Commitment to Cease and Desist (TCC) with Intelprice Soluções de Precificação Ltda., the developer of the Aprix pricing software used by fuel retailers in Brazil. The administrative case examined whether the software could facilitate price coordination or alignment among gas stations.
Under the settlement, Intelprice must ensure that its pricing model is transparent and explainable to Cade’s General Superintendence. The requirement aims to allow regulators to better understand how the algorithm operates and assess whether it could contribute to anticompetitive outcomes.
The company acknowledged its involvement in the conduct under investigation and committed to cooperating with Cade as the broader investigation continues. The agreement also introduces several compliance measures designed to mitigate competition risks. Intelprice will be required to appoint a compliance coordinator and strengthen its competition compliance program, while implementing strict procedures to ensure the segregation of pricing data and strategies belonging to different clients, particularly when they compete in the same local markets.
The settlement further requires the company to notify Cade if its market share reaches 20 percent in any municipality. During the term of the agreement, the authority will have access to Intelprice’s facilities and pricing software and may require the appointment of an independent auditor to verify that antitrust safeguards have been properly incorporated into the algorithm.
These developments come as Cade released the 24th edition of its “Cadernos do Cade” series, offering an updated overview of Brazil’s liquid fuel distribution and resale markets. The report describes a sector that remains strategically important but characterized by structural barriers to entry and concentration at key stages of the supply chain, factors that continue to attract close regulatory attention.
