Federal Court Imposes A Fine Of $1 Million For International Vitamin Conspiracies

OTTAWA, March 30, 2000 - The Competition Bureau announced today that the Federal Court of Canada has imposed a fine of $1 million for conspiracies to fix prices and allocate market shares for two vitamin products sold in Canada.

Merck KGaA of Germany, pleaded guilty and was convicted of participating in international conspiracies involving vitamin C and biotin, between 1991 and 1995. The conspiracies involved all of the principal producers of these vitamins for the world market. In addition to the fine, the court imposed a Prohibition Order prohibiting the commission or repetition of these offences for a period of ten years in Canada.

"This is another significant fine in the ongoing investigation into illegal cartels that increased prices and controlled the volumes of sales of bulk vitamins," said Konrad von Finckenstein, Commissioner of Competition. "The message to companies, in Canada and around the world, is loud and clear. We will not tolerate anti-competitive activities that affect Canadians."

Vitamin C is generally used to fortify food and juices, and in supplements, multivitamins and animal feed. Biotin is a B-complex vitamin used in dietary supplements, infant formula, multivitamins and animal feed. The conspiracies were designed to allocate the volumes sold by the different producers and to artificially raise the prices of these products. Merck's sales in Canada of these bulk vitamins were approximately $4.5 million.

In recent months, eight international and Canadian vitamin producers have been convicted and fined close to $100 million for their participation in conspiracies to fix prices and allocate market shares for a number of vitamin products. In addition, three senior executives have been sentenced to severe fines and custodial sentences for their role in the conspiracies. Inquiries into cartels in bulk vitamins and other food and feed additives are ongoing.

Copies of the documents filed before the Federal Court of Canada, Trial Division, in Ottawa are available here:

(Court File number T-304-00)
Agreed Statement of Facts (PDF: 225 KB)
Indictment (PDF: 65 KB)

For further information, please contact:

Cynthia Grant
(819) 994-0349