Indecopi fines Odebrecht more than S/ 4 million for obstructing the investigation

The Commission for the Defense of Free Competition (CLC) of the indecopi fined 867 UIT (tax tax units), equivalent to S/4’291,650, to CNO SA Peru Branch (CNO, formerly Constructora Norberto odebrecht SA Peru Branch), for refusing to provide information in a case brought against him for anti-competitive conduct in the construction sector.

According to the resolution issued on February 8, 2023, to which Peru21On July 11, 2017, Indecopi carried out multiple inspection visits for the so-called ‘Construction Cartel’ process, which includes the main public works construction companies in Peru; among these, CNO Branch.

Indecopi resolution sanctioning Odebrecht.

Despite having legal powers and having complied with informing it in writing about the rights and obligations that assisted it in the context of the inspection, CNO stated that They would not provide any information.refusing to comply with the requirements formulated by the inspectors and preventing the inspection visit ordered by the Directorate.

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CNO Branch alleged that due to a commitment to collaborate with the Prosecutor’s Office, it was prevented from providing the information required by the Directorate. However, the Prosecutor’s Office reported that this collaboration commitment did not preclude it from providing information when formally required by a public entity in the exercise of its powers.

It should be reiterated that the decision of the Commission has been issued in the first administrative instance, does not exhaust the administrative route and can be appealed within a period of fifteen (15) business days before the Indecopi Specialized Chamber for the Defense of Competition.

THE CASE

It should be remembered that this company’s refusal occurred within the framework of the investigation of the ‘Construction Cartel’, an anti-competitive coordination system that operated for more than fourteen years in Peru and notoriously harmed the execution of public works by the State .

This case warranted the largest fine imposed by Indecopi in its entire history. Although the CLC was able to sanction said cartel in the first instance by virtue of other elements of judgment, the CNO Branch’s refusal prevented management from having timely and direct access to relevant information to which it was legally empowered to access.