Court Decisions

Court Proceedings, Judgments and
Court Orders - 2001

To protect confidential information, the Bureau does not reveal the names of the companies involved unless they were otherwise made public.

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• 2001
• 2000

Pfizer Inc.

Date: 2001-10-24
Event: Conviction
Court: Federal Court of Canada, Trial Division
Court File Number: 1559-01
Party: Pfizer Inc.
Provision(s): 45 of the Competition Act - Conspiracy
Products: Food industry (Sodium Erythorbate)

Summary: An international investigation of the food preservative industry by the Competition Bureau, led to the conviction in the Federal Court of Canada of U.S. based Pfizer Inc. (Pfizer) which pleaded guilty to a price fixing charge under the Competition Act. The company was sentenced to pay a $1.5 million fine for its part in the conspiracy.

The Bureau's investigation, which started in 1999, revealed that Pfizer was involved in an international price fixing conspiracy from 1992 to 1994. The conspiracy fixed prices for sodium erythorbate which is used primarily as a food preservative agent to maintain colour and flavour in meat and other processed foods commonly sold in grocery stores.

Court Documents:
Agreed Statement of Facts (PDF: 533 KB)
Indictment (PDF: 160 KB)
News Release:
Competition Bureau Investigation Concludes With $1.5 Million Fine Against Pfizer Inc. in International Price Fixing Conspiracy

Ueno Fine Chemicals Industry Ltd.

Date: 2001-07-30
Event: Conviction
Court: Quebec Superior Court
Court File Number: 500-73-001599-014
Party: Ueno Fine Chemicals Industry Ltd.
Provision(s): 45 of the Competition Act - Conspiracy
Products: Food industry (Sorbates)

Summary: An international investigation by the Competition Bureau in the food industry led to the conviction, in Quebec Superior Court, of Japan-based Ueno Fine Chemicals Industry Ltd.(UFCI) which pleaded guilty to charges of price fixing and volume allocation. The company was sentenced to pay a $1,250,000 fine.

The Bureau's investigation, which started in 1998, revealed that UFCI was involved in an international price fixing and market sharing conspiracy for more than 17 years, affecting price levels of preservatives used in the food industry. The conspiracy fixed prices for sorbic acid and potassium sorbate, otherwise known as "sorbates", which are primarily used as mold inhibitors in the manufacture of foods such as dairy products, bakery products, flavours and spices, syrups and other processed foods commonly sold in grocery stores.

Court Documents:
Agreed Statement of Facts (PDF: 10 KB)
Indictment (PDF: 6.7 KB)
News Release:
Competition Bureau Investigation Leads to $1.4 Million Fines in International Price Fixing Conspiracy Case

Yoshiyuki Ebara

Date: 2001-07-30
Event: Conviction
Court: Quebec Superior Court
Court File Number: 500-73-001600-010
Party: Yoshiyuki Ebara (former senior executive of Ueno Fine Chemicals Industry Ltd.)
Provision(s): 45 of the Competition Act - Conspiracy
Products: Food industry (Sorbates)

Summary: An international investigation by the Competition Bureau in the food industry led to the conviction, in Quebec Superior Court, of Mr. Yoshiyuki Ebara, a former senior executive of Japan-based Ueno Fine Chemicals Industry Ltd. Mr. Ebara received a $150,000 fine for his part in the conspiracy. Ueno Fine Chemicals Industry Ltd. pleaded guilty to charges of price fixing and volume allocation and was sentenced to pay a $1,250,000 fine.

The Bureau's investigation, which started in 1998, revealed that UFCI was involved in an international price fixing and market sharing conspiracy for more than 17 years, affecting price levels of preservatives used in the food industry. The conspiracy fixed prices for sorbic acid and potassium sorbate, otherwise known as "sorbates", which are primarily used as mold inhibitors in foods such as dairy products, bakery products, flavours and spices, syrups and other processed foods commonly sold in grocery stores.

Court Documents:
Agreed Statement of Facts (PDF: 12 KB)
Indictment (PDF: 6.7 KB)
News Release:
Competition Bureau Investigation Leads to $1.4 Million Fines in International Price Fixing Conspiracy Case

Carbone of America Industries Corp.

Date: 2001-03-01
Event: Conviction
Court: Federal Court Trial Division, Toronto
Court File Number: T-189-01
Party: Carbone of America Industries Corp.
Provision(s): 45 of the Competition Act - Conspiracy
Products: Isostatic graphite

Summary: The U.S. corporation Carbone of America Industries Corp. pleaded guilty to conspiracy for fixing prices for the product isostatic graphite in semi-machined and non-machined form. The Federal Court Trial Division in Toronto fined the company $300,000.

Isostatic graphite is a fine grain carbon product that is very strong and is resistant to heat and chemical reaction. It is commonly used for electrical discharge machinery, dies for the continuous casting of metals, and various products used in the semi-conductor industry.

Carbone was a member of an international cartel that agreed to fix prices and to divide world markets for this product. Carbone had sales of isostatic graphite in Canada estimated at approximately $1.64 million during the period of the conspiracy, which lasted from about July 1993 to February 1998.

Court Documents:
Statement of Facts (PFD: 111 KB)
Indictment (PDF: 21 KB)
News Release:
Corporation Pleads Guilty to Participating in International Conspiracy to Fix Prices

Tokai Carbon Co. Ltd.

Date: 2001-02-05
Event: Conviction
Court: Federal Court Trial Division, Vancouver
Court File Number: T-24-01
Party: Tokai Carbon Co. Ltd.
Provision(s): 45 of the Competition Act - Conspiracy
Products: Graphite electrodes

Summary: The Japanese corporation, Tokai Carbon Co., Ltd. pleaded guilty to aiding its competitors to implement a foreign-directed conspiracy in Canada. Tokai was convicted in the Federal Court Trial Division in Vancouver, and fined $250,000.

Members of this international cartel, which operated from May 1992 until at least June 1997, agreed to fix prices and to divide world markets for graphite electrodes. Under the terms of the conspiracy agreement, it was understood that Tokai would not introduce sales into Canada, a market which was viewed as the preserve of domestic producers UCAR Inc. and SGL Canada Inc. By supporting the conspiracy, Tokai helped the price-fixing agreement to succeed in Canada. It is estimated that, as a consequence of the conspiracy, graphite electrode prices in Canada increased by more than 90 per cent over the six year period of the offence.

Graphite electrodes are used primarily in the production of steel in electric arc furnaces (the steelmaking technology used by all mini-mills) and for steel refining in ladle furnaces.

Court Documents:
Indictment ( PDF: 4.76 KB )
Statement of Facts ( PDF: 264 KB )
News Release:
Corporation Pleads Guilty to Price Fixing

Freyssinet Limitée

Date: 2001-01-08
Event: Conviction / Prohibition Order
Court: Federal Court of Canada, Trial Division
Court File Number: T-2389-00
Party: Freyssinet Limitée
Provision(s) : 47 of the Competition Act - Bid-rigging
Products: Reinforced concrete (relating to the Hibernia Project in St. John's, Newfoundland)

Summary: The Federal Court of Canada has imposed a fine of $800,000 on the company Freyssinet Limitée for an international bid-rigging scheme relating to the Hibernia project in St. John's Newfoundland.

Freyssinet Limitéée, headquartered in Montreal, Quebec, pleaded guilty to rigging a bid to supply and install a system to reinforce the concrete base of the Hibernia Development project. In imposing this fine, the Court took into consideration the fact that the company cooperated fully with the Bureau's investigation. In addition to the fine, the Court imposed an Order prohibiting the repetition of the offence.

Court Documents:
Indictment (PDF: 42 KB)
News Release:
Company Pleads Guilty to Bid-rigging under the Competition Act