Competition Bureau charges St. John's taxi companies with conspiracy

OTTAWA, July 9, 2004 - The Competition Bureau has charged six taxi companies, and seven people with conspiracy following an investigation into an alleged agreement to lessen competition in bidding for taxi-service contracts in St. John's, Newfoundland and Labrador. The charges were laid with the assistance of the Royal Newfoundland Constabulary.

Charged with conspiracy under section 45 of the Competition Act are: Bugden's Taxi (1970) Limited, Dave Gulliver's Cabs Limited, Lockey Haven Ltd., North West Taxi (1985) Limited, St. John's Taxi Co-operative Society Limited, The Mall Cabs Limited, David T. Fleming, Thomas K. Hollett, David Gulliver, Peter S. Crosbie, Peter Errol Gulliver, Albert E. Newell and Paul Maxwell Kennedy.

The Bureau alleges that, between 1992 and 2004, the taxi companies agreed not to compete with each other for contracts to supply taxi services to institutional and commercial facilities in St. John's. Under the Competition Act, it is a criminal offence for business competitors to conspire to prevent or lessen competition unduly.

The Competition Act aims to ensure that all market participants, whether they be buyers or sellers, consumers, businesses or government, enjoy the benefits of a competitive marketplace.

Penalties for conspiracy include fines of up to $10 million, imprisonment for up to five years, or both. Courts can also impose orders to prevent parties to a conspiracy from continuing or repeating the offence.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

For media enquiries, please contact:

Tim Weil
Director of Strategic Communications
Communications Branch
819-953-9271

For general enquiries, please contact:

Information Centre
Competition Bureau
819-997-4282
1-800-348-5358