Antitrust Law Daily Wrap Up, ANTITRUST NEWS: German auto parts supplier to pay $57.8 million fine for price fixing, (Mar 31, 2015)
Organizations Mentioned:NGK Spark Plug Co. Ltd. | NGK Spark Plug Co., Ltd. | Robert Bosch GmbH | Volkswagen AG
By Jeffrey May, J.D.
The world’s largest independent auto parts supplier—Robert Bosch GmbH—has agreed to plead guilty and to pay a $57.8 million criminal fine for its role in a bid rigging and price fixing conspiracy. Today, a one-count felony charge was filed in the federal district court in Detroit, alleging that the company conspired to allocate markets, fix prices, and rig bids for spark plugs, oxygen sensors, and starter motors sold to automobile and internal combustion engine manufacturers (U.S. v. Robert Bosch GmbH, Criminal No. 5:15-cr-20197).
Bosch reportedly participated in the challenged conduct involving spark plugs and oxygen sensors from about January 2000 until July 2011. Among Bosch's customers in this market were DaimlerChrysler AG, Ford Motor Company, General Motors Company, and Andreas Stihl AG & Co. Bosch also was charged with conspiring to allocate the supply of, rig bids for, and to fix the prices of starter motors sold to Volkswagen AG and its subsidiaries in the United States from between January 2009 and June 2010.
Under its plea agreement, which is subject to court approval, Bosch must cooperate in the Department of Justice Antitrust Division’s ongoing investigation into the auto parts industry. According to the Justice Department, as a result of the probe, 34 companies, including Bosch, and 29 industry executives have pleaded guilty or agreed to plead guilty to similar charges, involving a variety of auto parts.
Earlier related action against Japanese auto parts maker. The government's action against Bosch is the second related to spark plugs and standard oxygen sensors. The Justice Department's first charge involving these parts, as well as air fuel ratio sensors, was filed in August 2014 against NGK Spark Plug Co. Ltd. The Japanese auto parts maker agreed to plead guilty and to pay a $52.1 million criminal fine for its role in the conspiracy.
Companies: Robert Bosch GmbH; NGK Spark Plug Co. Ltd.
News: Antitrust AntitrustDivisionNews