Lead councilor Camila Cabral Pires Alves reduced the initial penalty of 50,000 reais proposed by the CADE’s Superintendence for Super Metais, lowering it to approximately 14,000 reais ($2,400).
The Brazilian competition watchdog’s Tribunal unanimously decided today to fine Super Metais for providing false responses in an ongoing investigation. However, the total fine amount was significantly reduced to less than one third of its originally proposed value.
Lead councilor Camila Cabral Pires Alves said in today’s session that Super Metais gave contradictory responses to the Superintendence of the Administrative Council for Economic Defense (CADE) during a probe opened in 2024.
Super Metais is a national company that manufactures more than 350 products related to hydraulics and sanitation. It produces faucets, drainage valves, shut-off valves, handwheels and other items for a range of over 4,000 retailers in 11 states across Brazil.
Super Metais denied to CADE that the Brazilian Association of Manufacturers of Materials for Sanitation, or Asfamas, had contacted them to inform the company of its failure in quality tests. In addition, Super Metais reported to the authority that it became aware of the allegations only after being approached by the Public Prosecutor’s Office.
Asfamas sent to the authority four copies of letters containing information about the quality tests failure, dated between June 2019 and July 2025. The association also requested clarification for Super Metais.
Asfamas also attached proof that it exchanged e-mails with Super Metais representatives to schedule a meeting to discuss the matter. In its response to CADE, Super Metais claimed that there was an interpretational disagreement related to the Superintendence’s question about Asfamas’ contact.
As a result, the Tribunal imposed a fine of 13,820.76 reais (or approximately $2,400) to Super Metais, a much lower amount than the 50,000 reais (or $8,800) recommended by the Superintendence.
Councilor Pires Alves reduced the penalty because, in her words, there was no evidence that the misconduct had significant negative effects on competition.
Super Metais had requested to pay the minimum value of 5,000 reais ($880) required by the law.
“It must be considered that such quantification isn’t limited to a percentage application based on the company’s revenue. It constitutes a public expression of institutional policy aimed at erroneously reaffirming the inadmissibility of the submission of complete, accurate, and truthful information, which are fundamental pillars for the integrity of the competitive analyses conducted by this authority,”
Pires Alves said.
The administrative process initiated against Super Metais is part of the splitting of a sham litigation probe into Asfamas after a formal complaint by Super Metais. CADE has been investigating whether Asfamas engaged in alleged anti-competitive practices aimed at smaller market entrants.
Source: Mlex
