Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Japanese Motor Vehicle Component Manufacturer Receives Record Fine for Bid Rigging Conspiracy, (Apr 19, 2013)

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

Yazaki corporation has been fined (Can.) $30 million by the Ontario Superior Court of Justice for conspiring with other Japanese motor vehicle components manufacturers to submit bids to supply Honda of Canada Manufacturing Inc. and Toyota Manufacturing Canada 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.) $30 million fine penalizes Yazaki’s bid rigging conduct with respect to wire harnesses supplied to Honda and Toyota for the 2005.5 Honda Ridgeline, 2006 Honda Civic and 2006 Toyota Corolla/Matrix models. Yazaki's total volume of commerce in Canada affected by the bid-rigging conspiracy was approximately (U.S.) $260 million, according to the Competition Bureau.

"Cartelists must be penalized for defrauding Canadians," said John Pecman, Interim Commissioner of Competition. "The record fine in this matter underscores the seriousness of bid-rigging offences and sends a strong message that companies need to comply with the law."

"Bid-rigging has a negative impact on the Canadian economy," added Matthew Boswell, Acting Senior Deputy Commissioner of Competition. "In this case, our investigation determined that Honda and Toyota were denied the economic benefits of a competitive bidding process with respect to the wire harnesses used in some of the most popular cars sold in Canada."

The Competition Bureau’s action against Yazaki 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.

The Competition Bureau obtained a then-record (Can.) $5 million fine against Furukawa Electric Co., Ltd. on April 4, 2013. Yazaki and Furukawa aided the Bureau’s investigation through their 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 or Toyota.

Companies: Yazaki Corp.

News: Antitrust