guia prático do cade - Conselho Administrativo de Defesa Econômica

Relevant Market Affected by the PracticeThe relevant market was defined as that of crushed rock in the MetropolitanRegion of São Paulo.In a conservative estimate, the Represented held 53% of the market in 1999 and57% in 2003, and according to documents seized by the Secretariat for EconomicLaw (SDE) from the head office of SINDIPEDRAS it states that the “Group” heldabout 70% of the market.Configuration of Anticompetitive ConductAccording to the documents obtained, the organization of businessmen operatingin the market of crushed rock in the metropolitan region of São Paulo hadbeen taking place since 1994, and from 1999 on there had been a clear advance inthe structuring of their actions. Initially, nine companies formed the group, the G9,which Secretariat for Economic Law (SDE) called “hard core”, becoming G14, withfive more companies joining in the sequence.SINDIPEDRAS, the association representing the companies taking part in themarket of crushed rock was in charge of organizing and presiding over the activitiesrelating to the cartel and to this end they used programs such as SISCO 11 andPAE 12 , overcoming the difficulties of tacit coordination resulting from the numberof companies involved.To join the group, a company would have to install the above-mentioned programsand present a list of their client portfolio called “Bible”. To join the group,the company also paid a “bond” (stipulated by multiplying the market share byR$2,000 - two thousand reais), deposited with SINDIPEDRAS, and a “premium”in the value of R$ 1,900 (nineteen hundred reais), as well as sharing administrativeexpenses to manage the scheme.In addition to SISCO and PAE, the cartel was monitored by inspectors called“shadows”, who were responsible for the organization of site inspections to preventcompanies from closing deals with “non-aligned” competitors.17411SISCO - a computer program installed in the companies participating in the cartel for the purpose of centralizing clientinformation and daily prices, which made it possible to manage the share assigned to each participant in the cartel. Theprogram was updated daily by the companies and redirecting of clients to companies that did not reach the pre-establishedquota was carried out in the “COURSE” (periodical meetings held at SINDIPEDRAS).12PAE - a computer program monitored by SINDIPEDRAS to control the market share quotas through company registration,type of product, price, period, region of distribution, client and sales, as well as checking compliance with the priceagreed. The program was, essentially, statistical and served as a tool for the control of sales.