CADE And Executives’ Liability For Competition Offences

On September 19, 2007, the Administrative Council for Economic Defence (CADE) in full session concluded that various security services companies were guilty of acting as a cartel in their participation in public bidding procedures for government contracts. Not only did CADE impose fines of up to 20% of the security companies' revenues, it also fined the individuals involved. Without going into the merits of CADE's decision, the case is particularly interesting for two reasons.

CADE's decision in the security services cartel case is the first in an investigation initiated by means of the Leniency Agreements provided for under the Competition Defence Law. When CADE determined that the Leniency Agreement had been fulfilled, it declared that the cooperating company and its officer were no longer subject to punishment, releasing them from criminal and administrative liability, and thus conferring a