Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Small sized bearings manufacturer agrees to plead guilty to price-fixing conspiracy, (Feb 2, 2015)

By Linda O’Brien, J.D., LL.M.

Small sized bearings manufacturer Minebea Co., Ltd., has agreed to plead guilty and to pay a $13.5 million criminal fine for its role in a conspiracy to fix prices for small sized ball bearings sold to customers in the United States and elsewhere, the Department of Justice Antitrust Division announced today. The charges were filed in the U.S. District for the Southern District of Ohio, in Cincinnati (U.S. v. Minebea Co., Ltd., Criminal No. 1:15-cr-00016).

Minebea, based in Nagano, Japan, manufactures and sells bearings used in numerous products to reduce friction and help parts roll smoothly past one another. Small sized ball bearings are those ball bearings whose outside diameter is 26 millimeters or less.

According to a one-count felony charge, Minebea conspired to fix the prices of small sized ball bearings in the United States and elsewhere. In addition to the criminal fine, Minebea has agreed to cooperate in the department’s ongoing investigation. The plea agreement is subject to court approval.

Minebea and its co-conspirator allegedly discussed and agreed upon noncompetitive prices to be submitted to small sized ball bearings customers and coordinated price adjusted requested by those customers. The conspirators employed measures to keep their conduct secret, including code names and meeting in remote locations, the Justice Department claimed. Minebea’s participation in the conspiracy lasted from at least as early as early-to-mid 2008 and continued until at least October 2011.

A violation of the Sherman Act carries a maximum penalty of $100 million fine for corporations. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the statutory maximum fine.

“Because of the unlawful price-fixing by the defendant and its co-conspirators, American businesses paid more for small-sized bearings than they otherwise would,” said Bill Baer, Assistant Attorney General of the Department of Justice’s Antitrust Division. “Working with the Federal Bureau of Investigation and our other law enforcement partners, the Antitrust Division will continue our efforts to ensure American businesses and consumers benefit from competitive markets.”

News: Antitrust AntitrustDivisionNews