Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Japanese automotive electronics supplier to pay $4.55M for rigging bids on power window switches, (Mar 17, 2016)

By Jeffrey May, J.D.

As a result of the Justice Department's ongoing antitrust investigation into the automotive industry, Omron Automotive Electronics Co. Ltd.—a Japan-based manufacturer of on-board electronics components for automobiles—has agreed to plead guilty to conspiring with an unnamed competitor to rig bids on power window switches. Omron has agreed to pay a $4.55 million criminal fine for its conduct. A one-count felony charge was filed today in the federal district court in Detroit (U.S. v. Omron Automotive Electronics Co. Ltd., Criminal No. 2:16-cr-20182-NGE-APP).

Omron and its co-conspirator allegedly conspired to rig bids for power window switches sold to Honda Motor Co. Ltd. The switches assist in raising and lowering the windows. The conspiracy extended to sales to Honda’s U.S. subsidiaries and affiliates, and the switches involved were installed in Honda Civics sold beginning in 2005 and continuing through 2013. The switches were purportedly installed in Honda Civics. The alleged conspiracy took place between June 2003 and February 2013, according to the government.

Omron statement. Omron issued a statement today, saying that the company has fully cooperated with the Justice Department's investigation. The company added that it was taking steps “to strengthen its training programs to ensure compliance with all applicable laws and regulations to prevent the recurrence of such issues in the future.”

Auto parts investigation. According to the Department of Justice Antitrust Division, Omron is the 39th company charged in the government’s ongoing antitrust investigation of the automotive industry. In addition, 58 executives have been charged. These defendants have agreed to pay more than $2.6 billion in criminal fines.

The charge against Omron is apparently the first case specifically targeting bid rigging for power window switches. Other suppliers of automotive electrical components, however, have pleaded guilty in the investigation. For instance, Yazaki Corporation and DENSO Corporation pleaded guilty and were fined $470 million and $78 million, respectively, for their involvement in multiple conspiracies to inflate the prices of parts sold to automobile manufacturers in the United States.

Companies: Omron Automotive Electronics Co. Ltd.; Honda Motor Co. Ltd.; Yazaki Corp.; DENSO Corp.

News: Antitrust AntitrustDivisionNews