Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Japanese auto parts maker sentenced to pay $19 million fine for price fixing, (Sep 13, 2013)

By Jeffrey May, J.D.

Diamond Electric Mfg. Co. Ltd., a Japanese manufacturer of automobile ignition coils, has been sentenced to pay a $19 million criminal fine for its role in a conspiracy to fix the prices of automobile ignition coils sold to Ford Motor Co., Toyota Motor Corp., and Subaru parent Fuji Heavy Industries Ltd. The judgment imposing the fine was entered by the federal district court in Detroit on September 11. In July, Diamond Electric agreed to plead guilty to the charge and to pay the fine (U.S. v. Diamond Electric Mfg. Co. Ltd., Case No. 2:13-cr-20524).

According to the Department of Justice, the action against Diamond Electric is the first in the government’s antitrust investigation involving auto parts sold directly to a U.S.-based automobile company, Ford. It also is the only case so far directed at fixing prices of ignition coils. Ignition coils are part of the fuel ignition system and release electric energy to ignite a fuel mixture. The conspiracy lasted from approximately July 2003 to February 2010, it was charged.

To date, eleven companies have pleaded guilty or agreed to plead guilty in the Antitrust Division’s ongoing investigation and have agreed to pay a total of $874 million in criminal fines. More than a dozen industry executives also have agreed to plead guilty to involvement in the anticompetitive conduct.

Attorneys: Donald C. Klawiter (Sheppard, Mullin, Richter & Hampton LLP) for Diamond Electric Mfg. Co. Ltd.

Companies: Diamond Electric Mfg. Co. Ltd.

News: Antitrust AntitrustDivisionNews