October 27, 2010
The Toronto Sun and others reported today that the Competition Bureau has launched a new criminal investigation in Quebec, in relation to Quebec’s construction industry.
The Bureau’s recently announced investigation follows closely on the recent price-fixing investigation in the Quebec gasoline industry (see: Criminal Charges Against 25 Individuals and 3 Companies in Quebec Gas Price-fixing Case), which was the largest investigation in the Bureau’s history resulting in the seizure of over 100,000 records, 90 locations searched the interception of thousands of telephone conversations (through the use of wiretaps) and 38 individuals and 14 companies accused of criminal price-fixing offences.
In reporting this case earlier today, the Toronto Sun stated that the investigation was separate from an ongoing criminal bid-rigging investigation involving Quebec construction companies and quoted Bureau officials as recognizing that the construction industry is particularly susceptible to price-fixing and bid-rigging conduct: “The construction sector is highly vulnerable to collusion. … It’s something that’s recognized worldwide. So in that sense, I don’t think Quebec is worse than other provinces.”
This recent investigation is one of a number of ongoing Bureau criminal investigations under Canada’s recently amended Competition Act, under which the maximum penalties are fines of up to $25 million (per count), imprisonment for up to 14 years, or both.
This recent investigation also accords with the Bureau’s continuing focus on the detection of domestic cartels in Canada (i.e., illegal price-fixing, market allocation and output restriction / boycott agreements between competitors).
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