Antitrust Law Daily Wrap Up, ANTITRUST NEWS: U.S. charges Bridgestone executives with conspiring to fix auto parts prices, (Apr 16, 2014)

By Jeffrey May, J.D.

Just two months after Japan-based Bridgestone Corporation agreed to pay a hefty fine for its role in a conspiracy to fix prices of automotive anti-vibration rubber parts, a current company executive and two former executives have been charged with participating in the cartel. Yesterday, a Cleveland federal grand jury returned a one-count indictment against Yasuo Ryuto, Yoshiyuki Tanaka, and Isao Yoshida (U.S. v. Ryuto, Criminal No. 3:14-cr-00138-JZ).

The three defendants are all Japanese nationals, according to the Department of Justice Antitrust Division. Tanaka, currently manager of the anti-vibration rubber original equipment international planning section, allegedly participated in the conspiracy from January 2004 until at least June 2008.

Ryuto and Yoshida are no longer employed by Bridgestone. However, while working at the auto parts company in various positions involving anti-vibration rubber parts sales, they participated in the conspiracy from around 2001 until sometime in 2008, it was alleged. According to the charge, the three individuals and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements regarding the sale of automotive anti-vibration rubber products to auto makers in the United States and elsewhere.

The indictment alleges that the conspiracy involved agreements affecting Toyota Motor Corporation automobiles. The government contends that the conspiracy to allocate sales of, to rig bids for, and to fix the prices of anti-vibration rubber parts also impacted Nissan Motor Corporation, Suzuki Motor Corporation, and Fuji Heavy Industries Ltd., as well as some of their subsidiaries, affiliates, and suppliers.

Bridgestone was charged in February for its role in the conspiracy. The company agreed to plead guilty and to pay a $425 million criminal fine.

The significant fine for the challenged conduct apparently resulted from Bridgestone’s failure to disclose its involvement in the auto parts price fixing conspiracy when it pleaded guilty in 2011 to price fixing and Foreign Corrupt Practices Act violations in the marine hose industry. In October 2011, Bridgestone paid a $28 million fine to resolve those charges.

“Today’s indictment again demonstrates that antitrust violations are not just corporate offenses but also crimes by individuals,” said Brent Snyder, Deputy Assistant Attorney General in charge of the Department of Justice Antitrust Division’s criminal enforcement program. “The division will continue to vigorously prosecute executives who circumvent the law in order to maximize profits by harming consumers.”

To date, 32 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry, according to the Justice Department. Additionally, 26 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.29 billion in fines.

Companies: Bridgestone Corp., Toyota Motor Corp.

News: Antitrust AntitrustDivisionNews