On 17 September 2025, Brazil's Administrative Council for Economic Defense (CADE) approved a cease and desist agreement with Continental Teves AG & Co. The proceedings concern alleged anticompetitive conduct in auto parts and accessories, particularly braking systems. The agreement does not end the proceedings immediately; suspension and subsequent closure depend on performance of the agreed obligations.
Position covered: 19 September 2025. CADE reported the agreement in Portuguese on 18 September and in English the following day. It is a Termo de Compromisso de Cessação (TCC) in pending administrative proceedings, not a court judgment on every investigated event or participant.
The agreement concerns proceedings opened in 2021
CADE's Office of the Superintendent General opened the investigation in 2021 on evidence of a cartel in the sale of auto parts. According to the authority, the case already included a leniency agreement and a cease and desist agreement with Bosch. Continental applied to negotiate a TCC in May 2025; the final version was submitted in September.
CADE states that Continental recognises its participation through the agreement and undertakes to end the investigated conduct and adopt measures against further competition infringements. It must also pay BRL 272,746.40 to the Fund for De Facto Joint Rights. The contribution is due in one instalment within 60 days of publication of the agreement in Brazil's Federal Official Gazette.
A TCC is neither an acquittal nor an ordinary fine
Article 85 of Brazil's Competition Law allows CADE to accept a commitment to cease the investigated practice or its harmful effects. The TCC must specify the obligations, a penalty for breach and, where applicable, a financial contribution to the fund. It is public and enforceable as an extrajudicial instrument.
For the signatory, the administrative proceedings are suspended while the commitment is performed and are closed at the end of the specified period only if all conditions have been met. Suspension does not automatically extend to other respondents. In the event of breach, CADE may apply the agreed sanctions and resume the proceedings.
Brazilian competition law can reach foreign supply chains
Under Article 2 of Law 12.529/2011, Brazilian competition law applies to practices carried out wholly or partly in Brazil or producing, or capable of producing, effects there. For internationally organised manufacturers and suppliers, the place where discussions, approvals or pricing decisions occur is therefore not the only relevant factor.
Businesses should compare Brazilian sales, distribution channels, local subsidiaries and possible market effects with group-wide communication and approval routes. Competitor contacts, trade-association activity and pricing, discount and tender processes should be documented so that lawful cooperation can be distinguished from prohibited coordination.
The fund contribution does not settle potential customer claims
The contribution to the Fund for De Facto Joint Rights is not compensation paid to individual customers. Article 47 of Brazil's Competition Law permits civil actions for injunctions and damages independently of the administrative proceedings. A specific claim nevertheless depends on the infringement, individual loss, causation, limitation and the rules of the competent court.
Purchasers and suppliers should therefore identify affected products, periods, prices, tenders and contractual chains separately. Neither the agreement nor the amount of its contribution proves a particular company's loss. An internal investigation must likewise not be treated as an admission without examination of Brazilian procedural law.
Review points for international automotive supply chains
- Identify Brazilian sales, subsidiaries, distributors and actual or potential market effects.
- Preserve price lists, quotations, discounts, tenders and relevant communications.
- Document competitor contacts and trade-association work by purpose, attendees and content.
- Align competition rules in distribution, supply and compliance processes with local responsibilities.
- Assess TCC effects, leniency and possible customer claims separately under Brazilian law.
Related insights
- End-of-life vehicle cartel: manufacturers must compete on recycling
- Poland: KIA and Iveco cartels show the limits of dealer control
- CJEU Volvo and DAF: limitation and proof in older cartel-damages claims
Official sources
- CADE: notice on the auto-parts agreement of 18 September 2025
- Brazilian Presidency: Law 12.529/2011, in particular Articles 2, 47 and 85
This article describes the position as at 19 September 2025 and is not advice on Brazilian competition or procedural law. The scope of an agreement, use of evidence, limitation and possible claims require review of the case file and the affected business.