Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canada Competition Bureau’s air cargo price fixing investigation yields eighth conviction, $1.5 million fine, (Jun 21, 2013)
Organizations Mentioned:Air France | British Airways | Cargolux | Cathay Pacific Airways Limited | Cathay Pacific Airways Ltd. | KLM | Korean Air | Martinair | Qantas
By Tobias J. Gillett, J.D., LL.M.
Cathay Pacific Airways Limited, an international air cargo company, pled guilty yesterday to criminal conspiracy charges under Canada’s Competition Act over its participation in an air cargo price-fixing cartel, the Canadian Competition Bureau has announced. The Ontario Superior Court of Justice has fined Cathay Pacific $1.5 million for its conduct.
According to the Competition Bureau, Cathay Pacific’s plea represents the eighth criminal conviction the Bureau has obtained in its ongoing investigation into surcharges imposed by air cargo companies. The Bureau previously obtained guilty pleas from Cargolux, Air France, KLM, Martinair, Qantas, British Airways, and Korean Air to charges related to price fixing of air cargo surcharges for shipments on certain routes from Canada. Cathay Pacific’s plea concerns navigation surcharges it imposed on international air cargo shipments to and from Cnada between April 13, 1999 and August 14, 2003.
"When the Bureau obtains evidence of wrongdoing, it does not hesitate to pursue those who engage in price-fixing agreements that harm Canadian businesses and consumers," said John Pecman, the Competition Bureau’s Commissioner of Competition. "These types of agreements represent one of the most egregious forms of anti-competitive behaviour."
The Bureau received assistance in its investigation through the cooperation of companies in its immunity and leniency programs, according to the Bureau.
The Competition Act treats as criminal offenses conspiring, agreeing, or arranging to fix prices, allocate customers or markets, or restrict the output of a product. The current conspiracy provision provides for a fine of up to $25 million and/or imprisonment for up to 14 years. However, the present case occurred under the former conspiracy provision, which provided for a fine of up to $10 million and/or imprisonment for up to five years.
Companies: Cathay Pacific Airways Limited; Cargolux; Air France; KLM; Martinair; Qantas; British Airways; Korean Air
News: Antitrust