Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canada Competition Bureau obtains ninth conviction in air cargo price fixing investigation, (Aug 20, 2013)

By Tobias J. Gillett, J.D., LL.M.

LATAM Airlines Group S.A., the parent company of LAN Cargo S.A., has pled guilty to criminal charges that it participated in a conspiracy to fix fuel and other surcharges paid on air cargo shipments, the Canada Competition Bureau announced today.

Over the course of the Competition Bureau’s continuing price fixing investigation, Air France, KLM, Martinair, Qantas, British Airways, Cargolux, Korean Air, and Cathay Pacific have pled guilty to fixing one or more air cargo surcharges on shipments to and from Canada. LATAM’s guilty plea concerns fuel surcharges imposed on flights from Canada to South America and other destinations from March 17, 2003 until February 14, 2006.

The Ontario Superior Court of Justice fined LATAM $975,000 for its participation in the price fixing conspiracy. The convictions obtained during the investigation have so far resulted in over $25 million in fines.

Under the current conspiracy provision in Canada’s Competition Act, it is a criminal offence for two or more competitors or potential competitors to conspire, agree or arrange to fix prices, allocate customers or markets, or restrict the output of a product. An offense under this provision is punishable by a fine of up to $25 million and/or imprisonment for a term of up to 14 years. In this case, the conduct occurred under the former conspiracy provision, which provides for a fine of up to $10 million and/or imprisonment for a term of up to five years.

Companies: LATAM Airlines Group S.A.

News: Antitrust