Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Auto parts supplier to pay $4.5M in Canada for bid rigging, (Dec 12, 2014)
Organizations Mentioned:American Honda Motor Co., Inc. | Yamashita Rubber Co., Ltd.
By Greg Hammond, J.D.
Yamashita Rubber Co., Ltd., a Japanese supplier of automobile anti-vibration components and systems, has pleaded guilty to two counts of bid-rigging under Canada’s Competition Act. The company was fined $4.5 million for the anticompetitive behavior.
The Competition Bureau’s investigation into Yamashita found that the company conspired with another auto parts supplier to rig bids for anti-vibration components and systems sold to Honda Motor Co., Ltd. for cars manufactured in Canada.
“International companies who engage in bid-rigging that impacts the supply of auto parts to Canadian-based automobile manufacturers continue to be an enforcement priority for the Bureau,” stated Senior Deputy Commissioner of Competition, Matthew Boswell. “Yamashita chose to plead guilty and cooperate with authorities in Canada. This is another example of how the Bureau’s Leniency Program works to detect and combat cartel offences, whether criminal conduct is committed in Canada or abroad.”
Yamashita pleaded guilty to similar charges in the United States, in 2013. The Department of Justice alleged that the company conspired to rig bids and fix prices for automotive anti-vibration rubber products sold to Honda Motor Co., American Honda Motor Co., and Suzuki Motor Corp. from at least April 2003 until May 2012. The plea agreement required Yamashita to pay a criminal fine of $11 million.
To date, the Competition Bureau’s investigation into motor vehicle component conspiracies and bid rigging agreements has resulted in seven guilty pleas and more than $56 million in fines.
Companies: Yamashita Rubber Co., Ltd.
News: Antitrust