$5M Fine for a Japanese Supplier of Motor Vehicle Components

$5M Fine for a Japanese Supplier of Motor Vehicle Components 
OTTAWA, ONTARIO -- (Marketwired) -- 04/04/13 -- As part of an ongoing
investigation by the Competition Bureau, Furukawa Electric Co., Ltd.
(Furukawa), a Japanese supplier of motor vehicle components, was
fined $5 million by the Ontario Superior Court of Justice for its
participation in an international bid-rigging conspiracy. This fine
is the largest ever ordered by a court in Canada for a bid-rigging
offence under the Competition Act. 
The evidence shows that Furukawa secretly conspired with other
Japanese motor vehicle components manufacturers to submit bids or
tenders in response to requests for quotations to supply Honda of
Canada Manufacturing Inc. (Honda) with certain motor vehicle
components.  
"Cracking down on cartels, including bid-rigging offences, is a top
priority for the Bureau," said John Pecman, Interim Commissioner of
Competition. "This criminal activity defrauded the automobile sector
in Canada and the substantial fine demonstrates the seriousness of
such an offence."  
Furukawa's plea relates to electrical boxes, including fuse boxes,
relay boxes and junction blocks, sold to Honda between 2000 and 2010
for the 2001 and 2006 Honda Civic models. The total volume of
commerce in Canada affected by the bid-rigging conspiracy was
approximately $41 million. 
Since 2000, Honda has produced over 2.2 million Honda Civics in
Canada. The Civic has been Canada's best-selling passenger car for 15
consecutive years.  
The Bureau's investigation only relates to motor vehicle components
manufacturers. There is no allegation of wrongdoing against motor
vehicle manufacturers, such as Honda; the customers of the companies
under investigation. 
The Bureau became aware of the motor vehicle components cartel by way
of its Immunity Program. The investigation also benefitted from the
cooperation of numerous companies under the Bureau's Leniency
Program. Furukawa participated in the Bureau's Leniency Program and
provided substantial assistance to the Bureau and the Public
Prosecution Service of Canada. The company's cooperation has saved
considerable costs associated with the investigation and prosecution. 
The Bureau's ongoing investigation into the motor vehicle components
industry is its largest to date with respect to bid-rigging, and is
being coordinated with a number of other jurisdictions, including the
United States, Japan, the European Community and Australia.  
The Competition Bureau, as an independent law enforcement agency,
ensures that Canadian businesses and consumers prosper in a
competitive and innovative marketplace.
Contacts:
For media enquiries, please contact:
Media Relations
819-994-5945
media@cb-bc.gc.ca 
For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282 - Toll free: 1-800-348-5358
TTY (hearing impaired): 1-800-642-3844
www.competitionbureau.gc.ca
 
 
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