Continental Faces Legal Complaint in Brazil

Complaints of uncompetitive behaviour appear to have been made against Continental AG in Brazil. A company spokesman has stated that Conti does indeed face a legal complaint there, however he did not, as the complaint remains pending, disclose the exact nature of the complaint or who initiated it.

A report published in Germany’s Handelsblatt business newspaper indicates that Brazil’s Ministry of Justice has raised allegations against the Continental Siemens VDO unit, claiming it has on several occasions attempted to have a trip recorder produced by rival company Seva Engenharia Eletrônica withdrawn from sale. After these attempts failed, it is alleged that the Conti unit approached the competitor with the suggestion of establishing a cartel.

The Siemens VDO unit has an 85 per cent share of Brazil’s market, says the Handelsblatt, with Seva holding only about 3 per cent. The Ministry of Justice has threatened a penalty of up to 30 per cent of turnover should Continental be found guilty of the allegations currently against it.