Colluio is a masculine noun in Portuguese, referring to a an agreement that is established between two or more individuals with the intention of harming another person. It is considered a conspiracy against something or someone.
A collusion is a meeting or group that has evil, greedy or petty goals and desires, and that normally harm other groups or individuals, acting against judicial laws or principles of morals and ethic.
This word is also widely used in the context of politics and economics, when, for example, a group of companies from the same sector unite in order to dominate the market, preventing the entry of other companies and acting as if it were a monopoly.
Collusion is provided for in Law No. 4,502, of November 30, 1964, as a penalty when applied against the tax system, as well as tax evasion and fraud.
"Art. 73. Collusion is the intentional adjustment between two or more natural or legal persons, aiming at any of the effects referred to in arts. 71 and 72" (tax evasion and fraud, for example).
tacit collusion
The definition of tacit collusion is widely used within the economic market, opposing the concept of explicit collusion.
Tacit collusion is formed by a group of companies that act implicitly, coordinating their productions and actions based on the reactions of other companies. On the other hand, explicit collusion, as the name suggests, happens when companies directly negotiate all agreements, prices and production processes with each other, as a way to reduce competition.
Both models are part of competition reduction strategies in the respective sectors in which the companies involved participate.
Learn more about the meaning of Tacit.
Bidding collusion
The collusion in bids is considered a fraud in the bidding process, as it consists in the formation of a group of bidders that control the division of the market, the establishment of quotas, the fixing of prices, among other anti-competitive factors that disfavor others bidders.
The third paragraph of article 36 of the Antitrust Law or Antitrust Law (Law No. 12,529, of November 30, 2011) provides that:
"§ 3 The following conducts, in addition to others, insofar as they constitute a hypothesis provided for in the caput of this article and its items, characterize infringement of the economic order:
I - agree, combine, manipulate or adjust with a competitor, in any form:
a) the prices of goods or services offered individually;
b) the production or marketing of a restricted or limited quantity of goods or the provision of a restricted or limited number, volume or frequency of services;
c) the division of parts or segments of a current or potential market for goods or services, through, among others, the distribution of customers, suppliers, regions or periods;
d) prices, conditions, advantages or abstention from public bidding;"
tax collusion
A tax collusion is the meeting of two or more individuals (physical or legal) with the intention of practicing tax evasion, that is, making a tax evasion.
Completion synonyms
- alliance
- arrangement
- coalition
- conspiracy
- little church
- clique
- machination
- plot
- intent
See also the meaning of Clique.