By Brazil Stock Guide – Brazil’s antitrust watchdog fined Japan’s Denso Corporation R$ 100.8 million on Wednesday for taking part in a cartel involving automotive wire harnesses and electronic vehicle components, bringing a long-running investigation into the auto-parts industry closer to an end.
Cade, Brazil’s Administrative Council for Economic Defense, ordered Denso to pay R$ 100.787 million within 30 days after the publication of the judgment minutes in the country’s official gazette.
The case focused on components sold to automakers, including wire harnesses — the electrical systems that carry power and signals through a vehicle — as well as electronic control units, junction boxes, meters, displays, ABS sensor cable systems, high-voltage cables and connectors.
According to Cade, the broader anticompetitive conduct took place from 2000 to 2009 and involved agreements to fix prices, allocate projects, divide markets and exchange commercially sensitive information.
Reporting commissioner Carlos Jacques Vieira Gomes said the conduct attributed to Denso occurred roughly between 2000 and 2008 and was designed to generate economic gains by pushing up prices for wire harnesses and automotive electronic components.
Cade said the alleged cartel ultimately affected consumers, who paid more for vehicles containing the components covered by the conduct.
The investigation was opened in 2015 and initially targeted 22 companies and 89 individuals. Over time, however, the case was narrowed substantially. Some defendants settled with the authority through cease-and-desist agreements, while others had the proceedings against them dismissed because of insufficient evidence.
That left Denso as the main corporate target of the final ruling.
The tribunal also said it would notify the Federal Public Prosecutor’s Office and the Attorney General’s Office, which may evaluate whether to pursue compensation for damages allegedly caused to society.
Denso is one of Japan’s largest auto-parts suppliers and has deep historical ties to Toyota. Toyota Motor is a major shareholder, but Denso is not a wholly owned Toyota subsidiary.
Brazil Stock Guide contacted Denso for comment and will update the story if the company responds.