Brazil's Governing Body for Economic Protection, known as CADE, has launched an administrative investigation into the monopoly of Aperam, a global manufacturer of stainless steel flat products. The company's production facilities are concentrated at six metallurgical sites located in Brazil, Belgium and France.
CADE opened administrative proceedings against the company following a complaint that the Luxembourg-based division of the metallurgical company Aperam was abusing its dominance in the Brazilian stainless steel market and interfering with imports and fair competition from rivals.
The investigation came in response to complaints from distributors and the Brazilian Ferrous Metals National Wiredrawing Union. The companies say the Aperam rebate and sales have made it difficult to import stainless steel, which is the only competing material in Brazil, according to CADE.
"Complaints suggest that Aperam may set prices and conditions for commercial sales in very different ways, refusing to sell, imposing unfair terms on independent traders, and in favor of distributors from its own economic groups," CADE said in a statement. If these allegations are confirmed, then such a policy of the company will be regarded as a violation of competition law in Brazil.
Aperam responded by saying that its business practices are operating "in accordance with best business practices and in full compliance with Brazilian competition laws." Aperam further clarifies that its relationship with customers and distributors is respectful and in accordance with Brazilian law. The company said it will make every effort to cooperate with CADE in the investigation.
