Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Quebec Individuals Convicted of Gasoline Price Fixing in Competition Bureau Action, (Mar 25, 2013)

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

As part of an ongoing Canada Competition Bureau investigation, a Quebec Superior Court has convicted three individuals for their roles in a gasoline price fixing conspiracy in Sherbrooke and Magog, Quebec, the Competition Bureau has announced.

Following a trial that commenced on January 8, 2013 and ended on February 7, 2013, Michel La grandeur, Linda Proulx, and Yves Gosselin were found guilty of conspiring to fix the price of retail gasoline. Sentencing of the individuals will occur at a later date.

In 2008, the Competition Bureau investigation publicly announced its discovery of price fixing in certain Quebec retail gasoline markets, including the Victoriaville, Thetford Mines, Sherbrooke, and Magog local markets. According to the Competition Bureau, competitors in those markets would contact each other by telephone to agree on the price of gasoline at the pump, as well as on the timing of price increases. Although some of the individuals operated under the name of a major oil company, the local operators of the gasoline stations had responsibility for setting the final price at the pump.

"Today's guilty verdict sends a clear message that price-fixing activities will not be tolerated in Canada," said John Pecman, Interim Commissioner of Competition. "Canadians are ultimately on the losing end of secret agreements that cheat them out of their money."

The Competition Bureau’s investigation has so far resulted in charges of criminal price fixing against thirty-nine individuals and fifteen companies, according to the Competition Bureau. Thirty-three individuals and seven companies have pled or were found guilty, with fines amounting to more than $3 million. Six individuals have received sentences of imprisonment totaling 54 months.

News: Antitrust