CADE fines Rumo BRL 247 million for making rivals unfeasible

On Wednesday, CADE (the administrative council for economic defense) announced the imposition of a fine for  247.1 million against Rumo for abusing its dominant position and creating difficulties for its rival in the railway sector during the export of sugar.

The penalty refers to an investigation opened in 2016, after rival Agrovia claimed that it depended on Malha Paulista, controlled by Rumo, to transport sugar to the Port of Santos (SP), but that the company was creating obstacles. Therefore, Agrovia had to cease its activities.

The complaint was reinforced by an investigation by the National Land Transport Agency (ANTT), which detected evidence of irregularities involving the same companies.

According to the investigations, Rumo closed the yard in Santa Adélia (SP), then essential to Agrovia’s activities, making it impossible for the company to provide services to customers during the off-season period. The maintenance of the yard, according to ANTT, was Rumo’s own responsibility.

Agrovia was unable to maintain its activities and withdrew from the market in 2016. Thus, a considerable part of the demand previously met by Agrovia was reallocated to Rumo, which benefited from the absence of the competitor in the market, concluded CADE.

Source:  Money Times

To read the full original article, visit the link:

https://www.moneytimes.com.br/cade-multa-rumo-em-r-247-milhoes-por-invibilizar-atuacao-de-rival/

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