Crompton Corporation fined $9 million for role in rubber chemicals cartel

OTTAWA, May 28, 2004 — The Competition Bureau announced today that Crompton Corporation pleaded guilty and was sentenced to a fine of $9 million for its part in an international price fixing conspiracy in the rubber chemicals market. Rubber chemicals are chemical additives used in products such as tires, car bumpers, and rubber hoses.

The Bureau's investigation, which began in 2002, revealed that Crompton, a U.S.-based global marketer of specialty chemicals, polymer products and processing equipment, conspired with other firms in the rubber chemicals market to fix prices and share customers from mid-1995 through 2001.

In the Court documents, Crompton admitted that:

• it participated with other rubber chemical suppliers in an international conspiracy to increase the price of certain rubber chemicals;
• from at least July 1995, senior and mid-level executives of Crompton participated in meetings and other communications with their counterparts from various other producers at various times;
• the parties to the conspiracy agreed to coordinate the timing and amounts of price increases for certain rubber chemicals and to share customers and sales volumes; and,
• they exchanged sales data and customer information on a periodic basis in order to monitor and enforce adherence to the agreement.

Crompton pleaded guilty to violating s. 45 of the Competition Act. Under this section, it is a criminal offence to agree with competitors to fix prices or share markets. The maximum fine is $10 million.

Copies of the documents filed before the Federal Court, in Ottawa, are available on the Competition Bureau's web site at www.competitionbureau.gc.ca or from the Court Registry (Court file number T-980-04)

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.

Court Documents
Agreed Statement of Facts PDF: 20 KB
Indictment PDF: 12 KB

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