Ethanol: company will be judged at Cade after speech by director – 03/26/2023 – Panel SA

The General Superintendence of Cade (Administrative Council for Economic Defense) recommended on Thursday (23) the condemnation of Miriri Alimentos e Bioenergia and Gilvan Celso Cavalcanti de Morais Sobrinho, CEO of the company, for inviting the cartelization of the ethanol market.

According to the agency, during an industry event in September 2021, the director of Miriri proposed that entrepreneurs in the fuel production and distribution chain strategically control the supply of products. In Cade’s understanding, this would be a way to leverage the companies’ power of action and “influence competitors to act in a convergent manner in the sector”.

The General Superintendence assessed that the conduct of the president of Miriri could harm competition and consumers.

Also according to the agency, Miriri’s defense told Cade that Gilvan’s speech was made in a public environment, the content of which was not understood by those present as an “invitation to cartelization” and that it did not generate coordinated action between the companies after the event. He also said that the company has a low market share and that it would be unable to change the composition of the sector.

The case will now be judged in Cade’s court, and the rapporteur will be counselor Luiz Augusto Azevedo de Almeida Hoffmann.

Miriri can be condemned to pay fines of up to 20% of the billing for the year prior to the filing of the administrative proceeding. Gilvan Sobrinho, on the other hand, may receive a penalty of 1% to 20% of the fine imposed on the company.

Contacted by Panel SA, Miriri did not respond until the publication of this text.

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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