At least eight companies and 37 individuals are being investigated by the General Superintendence of the Administrative Council for Economic Defense (Cade) for an alleged international cartel in the purchase of broadcasting rights for sporting events. According to the agency, the group acted from 2008 to 2017 and is suspected of having also acted in Brazil.
According to CADE, there are strong indications that the alleged cartel entered into anti-competitive agreements to coordinate prices and bids in private bids for the purchase of sports media rights, sporting events and the provision of consultancy and advisory services.
The investigations are in the administrative process phase. Persons and companies suspected of being part of the cartel will be notified to present a defense within 30 days after receiving the letter. At the end of the instruction, the General Superintendence will issue an opinion in which it recommends the conviction or the shelving of the case and will forward the result of the investigation to CADE’s Tribunal, which will judge the case.
According to the competition defense body, the group divided the market through the presentation of coverage proposals with combined values. The members defined among themselves abstentions in proceedings and joint submissions of bids in competitions. “There is still evidence of exchange of competitively sensitive information between companies”, highlighted Cade in a note.
There is a suspicion of Brazilian participation in the scheme because the preliminary investigation showed that some sports media rights would have been resold or licensed to broadcasters in Brazil or related to games of various modalities that took place in Brazilian territory from 2008 to 2017. In addition to the rights transmission, the alleged cartel would have acted to appoint agents, advisors and consultants who would act in the negotiations.
The fine for individuals who are part of cartels ranges from R$50,000 to R$2 million. Companies may have to pay between 0.1% and 20% of their turnover. In the case of individuals who manage the investigated companies, the punishment varies from 1% to 20% of the amount applied to the company.
