The General Superintendence of the Administrative Council for the Defense of Competition (Cade) launched an investigation to investigate alleged violations of the economic order in the judicial and extrajudicial auction market.
The action came from a representation of the multinational Copart do Brasil Organizadora de Auctions, which accuses the National Association of Judicial Auctioneers (ANLJ), the Union of Official Auctioneers of Rio Grande do Sul (Sindilei/RS) and the Union of Auctioneers of the State of Minas Gerais (Sindilei/MG) of “price fixing/setting, impediment to entry or development of activities by auction organizers and auctioneers, and control of the provision of services by third parties”.
Copart also complains that the three unions have filed several lawsuits (judicial, administrative, extrajudicial, etc.) to harm the company’s performance in the field of organizing extrajudicial auctions.
According to a technical note from CADE’s General Superintendence, the ANLJ argued that there was an irregularity in the contracting by Copart of an auctioneer to provide the service. For the entity, only the auctioneer could hire the auction organizer, and not the other way around.
Sindilei/MG claimed that Copart would receive the amounts resulting from the auctioneer’s commission, thus entering the private core activity of this professional. Sindilei/RS reiterated the arguments and questioned whether CADE would be competent to analyze the matter.
On the other hand, the General Superintendence of the antitrust agency declared that the issue is indeed the responsibility of the Brazilian System for the Defense of Competition (SBDC).
“This SG understands that the Brazilian legal system, with regard to the regulation of auction activity, prohibits the auctioneer from constituting, or participating in, a business company to carry out its activity. It does, however, give it the possibility of using business companies for the purpose of carrying out activities that are ancillary to its main and very personal activity, which is the public auction”, added the body.
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