Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Toyo Tire pleads guilty to bid rigging, fined $1.7M, (Dec 10, 2015)

By Michael Menzhuber, J.D., LL.M.

Following an investigation by the Canada Competition Bureau, Toyo Tire & Rubber Co., Ltd. has pleaded guilty to three counts of bid rigging under Canada’s Competition Act. Toyo, a Japanese manufacturer of automobile and truck tires and other rubber components, was fined $1.7 million for its participation in an international bid rigging conspiracy related to the supply of anti-vibration components to Toyota Motor Corp., Ltd., the Competition bureau announced.

The Competition Bureau’s investigation relates to a series of alleged conspiracies and bid rigging agreements or arrangements among various suppliers in the sale and supply of components used in the manufacturing of motor vehicles in Canada and elsewhere. The investigation found that, between June 2004 and August 2006, Toyo engaged in secret agreements with other suppliers of anti-vibration components in response to requests for quotes issued by Toyota for certain Corolla, RAV 4 and Lexus 350 RX models.

The Competition Bureau first learned of cartel activity in the motor vehicle components industry by way of its Immunity Program, after which it began investigating in December 2009. The investigation also benefitted from the cooperation of numerous companies under the Competition Bureau’s Leniency Program, in which Toyo also participated.

To date, the Competition Bureau’s investigation involving motor vehicle components has resulted in eight guilty pleas and over $58 million in fines imposed by the courts since April of 2013.

News: Antitrust