The Administrative Council for Economic Defense (Cade) has issued a ruling against a fuel cartel operating in the municipality of Coronel Vivida, located in Paraná. The Tribunal condemned three companies—Comércio de Combustíveis Stang Ltda, Santos & Merlo Ltda, and Pato Comércio de Combustíveis Ltda—along with two individuals for systematic anti-competitive practices. Totaling more than R$ 50 million, the collective fine converts to approximately $9.97 million USD based on current exchange rates, marking a firm stance against market manipulation in the region.
The investigation, led by rapporteur José Levi, uncovered a two-pronged scheme involving both public and private sectors. Evidence presented to the Court indicated that these agents conspired to rig public auctions held by the local municipality in 2017. By pre-determining winners for various lots of gasoline, diesel, and ethanol, the companies effectively simulated competition to divide public contracts among themselves. Communication records analyzed during the proceedings provided a clear trail of how these agents coordinated their bids to undermine the integrity of the bidding process.
Beyond the manipulation of public tenders, the cartel also fixed prices at the retail level. Messages recovered from communication apps revealed direct negotiations between competitors aimed at raising pump prices and protecting profit margins. This coordinated effort ensured that local consumers were denied the benefits of a competitive market, as the businesses worked together to keep fuel costs artificially high.
During the trial, the defense attempted to stall the proceedings by questioning the use of evidence shared from separate criminal cases. However, the Cade Tribunal rejected these motions, asserting the independence of administrative enforcement from criminal litigation. In addition to the multi-million dollar financial penalties, the Court imposed an administrative ban on the convicted businessmen, prohibiting them from participating in commercial activities or acting as company representatives for the next five years. This severe penalty underscores the gravity of the repeated misconduct and Cade’s commitment to protecting economic order.
