Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Nishikawa fined $130M for participation in auto parts bid rigging scheme, (Jul 21, 2016)
Organizations Mentioned:Nishikawa Rubber Co., Ltd.
By Michael Menzhuber, J.D., LL.M.
Nishikawa Rubber Co., Ltd., a Japanese manufacturer of automotive parts, has agreed to plead guilty and pay a fine of $130 million for its role in a conspiracy to fix the prices of and rig the bids for automotive body sealing products (BSP) installed in cars sold to U.S. consumers, the Justice Department announced.
According to charges filed in the U.S. District Court for the Eastern District of Kentucky, between January 2000 and September 2012, Nishikawa conspired to fix the prices and rig bids of BSPs sold to Honda Motor Company Ltd., Toyota Motor Corporation, Fuji Heavy Industries Ltd. (Subaru), and certain of their subsidiaries and affiliates. BSPs are installed into automobiles to keep the interior dry and free from wind and exterior noises.
The Antitrust Division worked closely with the Canada Competition Bureau throughout the investigation, pursuant to the Agreement Between the Government of Canada and the Government of the United States of American Regarding the Application of their Competition and Deceptive Marketing Practices Laws. In determining the amount of the proposed fine, the Antitrust Division included $236 million in sales made to Toyota and Honda in Canada.
The plea agreement will be subject to court approval. Once the final judgment is entered, the Commissioner of the Canada Competition Bureau will not pursue for enforcement judgment against Nishikawa for this conduct because Nishikawa’s conduct primarily targeted the United States and because the fine imposed is an effective remedy in the United States and Canada.
"Nishikawa has agreed to pay a steep price for its participation in a conspiracy that victimized consumers in both the United States and Canada," according to Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.
Including Nishikawa, 45 companies and 64 executives have been charged in the Antitrust Divisions’ ongoing investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry and have agreed to pay a total of $2.8 billion in criminal fines.
Companies: Nishikawa Rubber Co., Ltd.
News: Antitrust AntitrustDivisionNews