Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Bridgestone to pay $425 million fine for role in auto parts price fixing conspiracy, (Feb 13, 2014)
Organizations Mentioned:Bridgestone Corp.
By Jeffrey May, J.D.
Japan-based Bridgestone Corporation has agreed to plead guilty and to pay a $425 million criminal fine for its role in a conspiracy to fix prices of automotive anti-vibration rubber parts. A one-count felony charge was filed today in the federal district court in Toledo against the company (U.S. v. Bridgestone Corp., Criminal No. 3:14-cr-68).
Bridgestone was charged with engaging in a conspiracy to allocate sales of, to rig bids for and to fix, raise and maintain the prices of automotive anti-vibration rubber parts it sold to Toyota Motor Corp., Nissan Motor Corp., Fuji Heavy Industries Ltd., Suzuki Motor Corp., Isuzu Motors Ltd. and certain of their subsidiaries, affiliates and suppliers. Anti-vibration rubber parts are comprised primarily of rubber and metal, and are installed in suspension systems and engine mounts, as well as other parts of an automobile, for the purpose of reducing road and engine vibration. Bridgestone’s alleged involvement in the conspiracy to fix prices of anti-vibration rubber parts lasted from at least January 2001 until at least December 2008.
The huge fine apparently resulted from Bridgestone’s failure to disclose its involvement in the auto parts price fixing conspiracy when it pleaded guilty in 2011 to price fixing and Foreign Corrupt Practices Act violations in the marine hose industry. In October 2011, Bridgestone paid a $28 million fine to resolve those charges.
The government noted that the failure to disclose the conduct in the earlier antitrust action was a factor in the large fine.
“The Antitrust Division will take a hard line when repeat offenders fail to disclose additional anticompetitive behavior,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “Today’s significant fine reaffirms the division’s commitment to holding companies accountable for conduct that harms U.S. consumers.”
In addition to the fine, Bridgestone will cooperate with the government in its ongoing investigation under the plea agreement.
Companies: Bridgestone Corp.
News: Antitrust AntitrustDivisionNews