On July 19th, the Competition Bureau announced that a Montreal company, Les Entreprises Promécanic Ltée, has pleaded guilty to three charges of bid-rigging and was fined $425,000 for its alleged role in rigging bids in relation to residential highrise building ventilation contracts in Montreal.
According to the Bureau, the Montreal company admitted that it was involved in coordinating with competitors to pre-determine the outcome of bids. Interestingly, this case also included an internal compensation arrangement between the parties to ensure that contracts were awarded to the pre-arranged company.
In making the announcement, the Commissioner Melanie Aitken said:
“Bid-rigging deprives Canadians of the benefits of a competitive market, including lower prices and product choice. … The Competition Bureau will continue to vigorously seek prosecution against those who thwart the forces of competition.”
The Bureau also reiterated that criminal cartels and bid-rigging remain enforcement priorities, stating that “attacking cartels, including bid-rigging offences, is one of the Bureau’s top priorities.”
In Canada, bid-rigging is a criminal offence under section 47 of the federal Competition Act, under which it is an offence to enter into an agreement, in response to a call or request for bids or tenders, to not submit a bid or tender, withdraw a bid or tender already made or submit bids or tenders that are arrived at by agreement.
Like criminal conspiracy agreements under section 45 of the Act, bid-rigging is a per se criminal offence, in that it is not necessary to establish any adverse market effects (though all elements of the offence must be proven on the criminal burden of proof – i.e., beyond a reasonable doubt).
Parties violating the bid-rigging provisions of the Act are liable to unlimited fines (i.e., a fine in the discretion of the court), imprisonment for up to 14 years, or both. It is also common for the Bureau to seek prohibition orders in bid-rigging cases, as the Bureau also did in this case, to prohibit the continuation of an offence.
Private parties that have suffered loss or damage as a result of a breach of the criminal provisions of the Act, including the bid-rigging offences under section 47, may also commence private civil actions.
For the complete Bureau news release see:
Guilty Plea and $425,000 Fine for Bid-rigging in Montreal
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