By Hash Techs 
The Post Office is urging Cade to reopen the inquiry into J&T Express Brazil for alleged unfair practices in the delivery market by formally requesting the Ministry of Finance to push the Administrative Council for Economic Defense (Cade) to revisit the closed case.
J&T, an Indonesian company, has been doing business in Brazil since 2021. According to the Post Office, the competitor is engaging in dumping by offering services at prices lower than the actual cost, resulting in negative margins of over 40%. This could make its operations unviable in regular market conditions.
The state believes that J&T’s pricing strategy may drive smaller companies out of the market as they may struggle to compete with the company’s competitive rates, as reported by Folha de S.Paulo.
What is the statement of J&T Express?
J&T Express Brasil told Revista West that it has not seen the new lawsuit but confirmed that it operates legally and upholds free competition principles in Brazil.
The carrier also emphasized its dedication to transparency and progress in the logistics industry, offering to provide any needed explanations to authorities.
Remind the situation
Abraed had reported J&T’s behavior to Cade, but the case was closed due to insufficient evidence.
The Post Office is asking the Economic Monitoring Secretariat (SEAE) to create a new complaint calling for an immediate investigation into J&T and similar companies.
Recall the sequence of events in the conflict between J&T Express and the Brazilian Post Office.
2021 – J&T Arrival Express to Brazil
The Asian airline, which was first established in Indonesia, commences operations in Brazil emphasizing quick deliveries and competitive pricing. Through significant investments, J&T aims to capture market shares currently held by companies like Post and Jadlog.
2022 – Rapid expansion
J&T rapidly grows its business by collaborating with major online shopping platforms and enlarging distribution hubs. The competitive pricing strategy is starting to attract notice within the industry.
2023 marks the beginning of the first formal complaints.
Smaller businesses and logistics companies are starting to struggle to compete with the values of J&T. The initial complaint about potential dumping is filed by Abraed with Cade, the Brazilian Association of Distribution Companies.
In January 2024, Cade lodged the complaint.
Cade decides to dismiss Abraed’s complaint due to a lack of solid evidence of anti-competitive behavior, which is in line with Brazilian laws, according to J&T.
Posts join the battle in May 2025.
The government steps in and requests the Ministry of Finance to reopen the case after receiving reports that J&T engaged in dumping with significant negative margins, leading to unfair competition in the industry.
Next actions
Cade has not yet shown up in response to the new request. J&T could be subject to an administrative procedure with potential fines or commercial limitations if found guilty of anticompetitive behavior, should the investigation be reopened.
Information sourced from Western Magazine.