The Competition Bureauannounced yesterday that another individual has pleaded guilty to criminal charges under the federal Competition Act for conspiring to fix the price of gasoline at the pump in Quebec (Sherbrooke). According to the Bureau, Michel Dubreuil, who was a former owner of two stations under the Esso banner in Sherbrooke, was sentenced to six months in jail (to be served in the community, based on his having no prior criminal record). Mr. Dubreuil was also ordered to make a $25,000 donation to charity. To date, charges have been laid against thirteen individuals and eleven companies accused of fixing the price of retail gas at the pumps in Quebec (Victoriaville, Thetford Mines, Magog and Sherbrooke). As of yesterday, fines in this matter have totalled over $2.7 million.
This recent gasoline case shows both that the Bureau is sensitive to consumer perception of price fixing of retail gasoline in Canada (this is presumably a deterrent setting case), as well as the Bureau’s increased interest in detecting domestic criminal cartels. It will remain to be seen whether, and to what extent, enforcement increased following the coming into force of the new criminal conspiracy provisions under the Competition Act in March, 2010 (which will result in three new “per se” criminal offences prohibiting “hard core” price fixing, market allocation/division and output restriction agreements, together with increased penalties of criminal fines up to $25 million and/or imprisonment for up to 14 years).
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