Annual Report 1996/97 - Enforcement of the criminal provisions of the Act continues to be a key Bureau activity

Driving schools

On June 15, 1996, the first trial by jury under the Competition Act concluded with verdicts of guilty on all six counts against Mr. Jacques Perreault, who was associated with one of the accused driving schools based in Sherbrooke. The seven-week trial commenced on April 23, 1996, before Mr. Justice Paul Marcel Bellavance of the Quebec Superior Court in Sherbrooke. The accused, Mr. Perreault, had exercised his right to have a separate trial by jury. On September 9, 1996, Mr. Perreault was sentenced to a one-year prison term.

The charges against Mr. Perreault included conspiracy to fix prices, engaging in price maintenance, predatory pricing policies and regional price discrimination policies in the Sherbrooke driving school market in 1987. The accused was also charged for his role in engaging in predatory pricing policies and regional price discrimination policies in the Magog driving school market during the 1988-1991 period.

On November 6, 1996, sentences were imposed against another principal accused in this case, following the Quebec Superior Court's decision to accept guilty pleas on November 1, 1996. Mr. Yves Aubé and his companies, École de conduite Tecnic Aubé Inc., 2172-3572 Québec Inc., and École de conduite Tecnic Estrie Inc. pleaded guilty to all three counts involving price fixing, predatory pricing and regional price discrimination offences under the Act. Groupe Lauzon Inc. also pleaded guilty to the offence of price fixing. The pleas were entered at the end of the first week of trial.

Mr. Justice Réjean Paul sentenced Mr. Aubé to 100 hours of community service and imposed a personal fine of $10,000, payable within 30 days. In default of payment, Mr. Aubé would be subject to a prison term of four months. His company, École de conduite Tecnic Aubé Inc., was fined a total of $40,000, payable within 30 days. The Court also imposed 15 year prohibition orders against the repetition of the offences on the above accused and also on École de conduite Asbestrie Inc. and Mr. André Comeau of Groupe Lauzon Inc.

On January 28, 1997, the last remaining accused in this case, École de conduite Lauzon Sherbrooke, pleaded guilty to breach of a prohibition order and was fined $5,000.

The case was the first trial by jury ever held with respect to a criminal offence under the Act. It resulted in the first prison term and community service sentences ever handed down by the Courts for price related offences under the Act. It also resulted in the first convictions registered for regional price discrimination and breach of a prohibition order under the Act.

Ready-mix concrete

Four companies in the metropolitan Quebec City area were fined a total of $5.8 million on August 19, 1996, after pleading guilty to one count of conspiracy under the Competition Act. This was the second highest fine imposed on a group of companies for one count under the Act.

Ciment Québec Inc., Ciment St-Laurent Inc., Lafarge Canada Inc. and Béton Orléans Inc., pleaded guilty to having entered into an agreement and collaborated with other persons to share the sales of ready-mix concrete produced for projects requiring 300 cubic metres of concrete in the Quebec City metropolitan area.

In addition to the fine, a prohibition order of 15 years duration was imposed, requiring the companies to respect the provisions of the Act and obliging them to understand the law and to ensure that their officers and administrators comply with the law. These officials are also required to attend information sessions on the Act, which will be prepared in collaboration with Bureau staff and presented by the president and the legal counsel for each company.

Optical frames

On October 9, 1996, Vilico Optical Inc. agreed to a prohibition order pursuant to subsection 34(2) of the Competition Act. In 1995, Vilico Optical Inc. was charged with two counts pursuant to paragraph 61(1)(a) and one count pursuant to paragraph 61(1)(b) of the price maintenance provisions of the Act. Vilico Optical Inc. was charged with influencing upward or discouraging the reduction of the price charged by Le Lunetier by agreement, threat or promise, and with refusing to supply Le Lunetier due to its low pricing policy.

The Attorney General has decided to drop all proceedings against Luxottica Canada Inc. which had been charged with one count each pursuant to paragraph 61(1)(a) and 61(1)(b) of the Act.

Compressed gas

Mr. T. John Tindale, the former President of Canox, was convicted and fined $35,000 under paragraph 45(1)(c) of the Competition Act on October 9, 1996, in Ontario Court (General Division) in respect of a price fixing and market sharing agreement regarding various compressed gases. The conspiracy took place from 1989 to 1990. The companies Canox, Union Carbide-Linde Division, Canadian Liquid Air Ltd., Liquid Carbonic Inc., and Air Products Canada, and some of their senior executives, were previously convicted in this matter for the period 1991 to 1993. Mr. Tindale is currently appealing his conviction.  ⁷

Commercial waste industry

On January 29, 1997, Mr. Pierre Paré, a former senior official with Gestion des rebuts DMP Inc. in Quebec's Mauricie Region, pleaded guilty to one count of conspiracy to unduly lessen competition, and must pay a record fine of $550,000 under the Competition Act. The Court also imposed a one-year jail sentence to be served in the community on Mr. Serge BriÀre and Mr. Robert Caron, both formerly with Gestion des Rebuts DMP Inc.

This matter follows the guilty plea by Gestion des Rebuts DMP Inc., in April 1996, for a related conspiracy offence; the company was fined $1,950,000. The offence involved an agreement between competitors to share the market for the hauling and disposal of commercial waste in the Mauricie region of Quebec between 1989 and 1992. The victims of this conspiracy were businesses such as restaurants, corner stores, garages and shopping centres, which lease commercial waste containers.

Mr. Justice Lévesque of the Quebec Superior Court also sentenced Mr. Paré to perform 100 hours of community service. In addition, a prohibition order was imposed on the three individuals which requires them to comply with the Act for a period of 10 years.

Fax paper

On February 17, 1997, Mitsubishi Paper Mills Ltd. (MPM) pleaded guilty to a section 45 and a section 61 offence before the Federal Court of Canada in Ottawa. MPM was fined $850,000 and a prohibition order was issued against it.

On July 16, 1996, New Oji Paper Co. Ltd., appeared before the Federal Court of Canada and pleaded guilty to a paragraph 45(1)(c) offence. The accused was fined $600,000 and a prohibition order was issued.

These guilty pleas conclude this case which involved firms located in Canada, the United States, Japan and Hong Kong. Total fines amounted to $3.4 million. The case also demonstrated the need for cooperation among competition law agencies in the increasingly global marketplace.

Land surveyors

On March 10, 1997, La Fédération des arpenteurs-géomètres du Québec pleaded guilty to a charge of price maintenance pursuant to paragraph 61(1)(a) of the Act. The Quebec Superior Court imposed a fine of $50,000 on the Fédération as well as a prohibition order, as provided for in subsection 34(1) of the Act, which prohibits the continuation or repetition of the offence. The offence related to an agreement between the members of the Fédération des arpenteurs-géomètres du Québec to maintain the level, or prevent a reduction in fees in the regions of Quebec, Trois-Rivières and the south shore of Montreal. This was the first time in Canada that a professional association pleaded guilty to having an agreement to raise, maintain or prevent a reduction in the professional fees charged by its members.

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7. Mr. Tinsdale's appeal was dismissed on October 22,1997.