Competition Bureau Investigation Nets $600,000 Fine from Bioproducts Incorporated

OTTAWA, August 19, 2003 — The Competition Bureau announced today that, on August 18, 2003, Bioproducts Incorporated pleaded guilty in the Federal Court of Canada and was fined $600,000 for its part in a conspiracy affecting the sale and supply of an additive widely used in the animal feed industry, especially for poultry and hogs.

"Conspiring to fix prices and allocate markets are criminal offences with serious consequences," said Denyse MacKenzie, Senior Deputy Commissioner of Competition. "Criminal cartels cause damage to our economy and can drive up prices for Canadian consumers."

The Bureau's investigation concerning the animal food additive Choline Chloride, which started in 1999, revealed that Bioproducts, a US based company, participated in an international conspiracy to fix prices in Canada and to allocate market shares here and abroad from 1988 to 1998. As a result of this conspiracy, a very significant proportion of the Canadian market was insulated from foreign competition.

With the Bioproducts guilty plea, a total of four firms have been convicted in the Bureau's Choline Chloride inquiry. The Federal Court also convicted Akzo Nobel Chemicals BV, and fined the company $1 million for its role in the conspiracy. In September 1999, BASF AG of Germany and Chinook Group Limited of Toronto pleaded guilty and were also convicted for their participation in this conspiracy. They were fined $1 million and $2.25 million, respectively. As well, a former vice-president of Chinook was sentenced to a nine-month prison term to be served in the community, and to 50 hours of community services.

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
No. T-1349-03
Amendment to Agreed Statement of Facts (PDF: 97KB)
Agreed Statement of Facts (PDF: 228KB)
Indictment (PDF: 59KB)
Prohibition Order (PDF: 414KB)

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