Cade fines R$306 million involved in packaging cartel

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The Court of the Administrative Council for Economic Defense (Cade) sentenced eight companies and eight individuals for forming a cartel in the flexible packaging market. For anti-competitive practices, fines totaling R$306 million were imposed — R$298.3 million for companies; R$2.3 million for individuals; and R$5.2 million for sector associations that encouraged the practice.


Starting on April 11, the trial had been suspended on request. The process had been ongoing for 12 years. For the counselor reporting the case, João Paulo de Resende, the investigation's evidence demonstrated the existence of an agreement signed between the companies to divide customers.

“In addition to price fixing for the B2B Lead purpose of maintaining market share, as well as the exchange of sensitive commercial information between competitors. The anti-competitive practices, which lasted from 2001 to 2006, had the assistance of the Brazilian Association of Laminated Packaging Manufacturers (Abraflex) and the Brazilian Association of the Flexible Plastic Packaging Industry (Abief), which induced and coordinated attempts to standardize prices and commercial strategies of the sector”, stated the rapporteur.

The rapporteur's vote was supported, on merit, by the majority of the council. Regarding the fines applied, the court also followed Resende's understanding by a majority. The counselors recognized that members were advised to maintain minimum prices, reduce supply in periods of low demand and align prices in the national flexible packaging market.



In a statement, Abief stated that it disagrees with the sentence imposed by Cade and claims that the sector is fragmented and works with very low margins, which “contradicts cartel practices”. He also said that issues essential to the process were no longer analyzed by the council and that the decision was based on insufficient evidence. The entity emphasizes that it will work to resolve the issues at an administrative level and that it can appeal to the Court to reverse the conviction.