- 6 November 2025
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CADE reviews fine imposed on Rumo and reinforces its stance on proportionality in unilateral conduct
Following a court order, during a Trial Session on September 3, 2025, CADE’s Tribunal reviewed the penalty imposed on Rumo for non-compliance with the Merger Control Agreement (ACC) signed in the acquisition of ALL, in 2015. The 92% reduction in the original fine was accompanied by CADE’s position that sanctions should be proportional to the extent of the conduct and the scope of its effects.
The infringement involved the prohibition of access to essential infrastructure, evidenced by the interruption of the rail flow in the Santa Adélia yard in São Paulo, which was considered as non-compliance with the ACC and an abuse of a dominant position in the rail transport and logistics markets for sugar exports through the Port of Santos. The conduct came to CADE’s attention through a complaint of non-compliance with a clause of the ACC in which the parties would have committed to create a compliance position to monitor the provision of services to identify hypotheses of market closure or discrimination between users of essential infrastructure.
The original fine had been set at R$ 247 million, based on Rumo’s aggregate revenue from rail transport, storage and logistics. However, the conviction was judicially annulled on the grounds that the calculation basis had no connection with the market effectively affected by the conduct. The Federal Regional Court (TRF-1) pointed out that the infringement was limited to a single yard and a single product, and that it would be disproportionate to adopt the group’s global revenue as a parameter.
In the judgment, an agreement was reached whereby CADE recalibrated the dosimetry and set the pecuniary contribution at R$ 18.1 million – a reduction of 92%, based solely on the revenue related to the rail transport of sugar in the affected network . In return, the defendant undertook to sign the withdrawal agreement of the annulment action that gave rise to the lawsuit and any other related judicial or administrative appeals.
The Reporting Commissioner Gustavo Augusto highlighted the need to tailor the sanctioning response to the actual scope of the conduct: “Unilateral conducts can and should be punished in proportion to the damage caused. However, they are less severe infringements“, especially when their effects are geographically and product-specific.
This content is part of the Monthly Competition and Antitrust Bulletin. Also check the other highlights of the month: A New Tool to Deepen the Competition Debate, CADE Launches First Investigation into Online Betting Platforms, CADE Investigates Gun-Jumping in the Formation of Soccer Leagues, CADE Reviews Fine Imposed on Rumo and Reinforces Its Stance on Proportionality in Unilateral Conduct, CADE Changes Its Stance on Codeshare Agreements and Orders Notification and Brazilian Government Proposes New Competition Regulation for Digital Platforms.
