Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Japanese Motor Vehicle Component Manufacturer Receives Record Fine for Bid Rigging Conspiracy, (Apr 8, 2013)

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

Furukawa Electric Co., Ltd. has been fined (Can.) $5 million for conspiring with other Japanese motor vehicle components manufacturers to submit bids to supply Honda of Canada Manufacturing Inc. with certain motor vehicle components, the Canada Competition Bureau has announced. The fine represents the largest ever ordered by a Canadian court for a bid rigging offense under the Canadian Competition Act, according to the Competition Bureau.

The (Can.) $5 million fine penalizes Furukawa’s bid rigging conduct with respect to electrical boxes, fuse boxes, relay boxes, and junction blocks sold to Honda between 2000 and 2010 for the 2001 and 2006 Honda Civic models. The conspiracy in which Furukawa participated affected (Can.) $41 million in commerce, according to the Competition Bureau.

"Cracking down on cartels, including bid-rigging offences, is a top priority for the Bureau," said Interim Competition Commissioner John Pecman. "This criminal activity defrauded the automobile sector in Canada and the substantial fine demonstrates the seriousness of such an offence."

The Competition Bureau’s action against Furukawa is part of an ongoing investigation into bid rigging in the motor vehicle components industry. In the course of its investigation, the Competition Bureau has collaborated with competition authorities in the United States, Japan, the European Union, Australia, and other jurisdictions. Furukawa itself aided the Bureau’s investigation through its participation in the Bureau’s Leniency Program, according to the Bureau.

The Competition Bureau noted that its investigation only concerns motor vehicle component manufacturers, and that no allegations of misconduct have been made against motor vehicle manufacturers such as Honda.

Companies: Furukawa Electric Co., Ltd.

News: Antitrust