Brazil: CADE launches probe against Claro, OI Móvel and Telefónica Brazil

The General Superintendence of the Administrative Council for Economic Defense (CADE), Brazil’s competition watchdog, has launched an administrative process to establish an alleged case of collusion between telecommunications heavyweights Claro, OI Móvel and Telefónica Brasil, acting on the basis of a complaint filed By the Brazilian postal and telegraph service due to irregularities in price discrimination, among others.

The case dates back to 2015, when BT accused Claro, OI and Telefónica of colluding to eliminate competition between them in tenders held by public administrative bodies for the contracting of telecommunications services with national coverage.

BT Brasil has questioned the legality of the companies’ coordination, since between them they control access to a large part of local telecommunications infrastructure. CADE has said that its preliminary investigation reveals “strong indications of anticompetitive practices carried out by the companies represented …” The companies will be notified in the next few days. CADE authorities will determine if the case goes ahead, transferring the final decision to this institution’s High Court.

Full Content: Agencia Brasil

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