Canadian COMPETITION LAW

On May 4, 2012, the Competition Bureau announced that Maxzone Auto Parts (Canada) Corp. has pleaded guilty for participating in an international price-fixing cartel relating to the sale of aftermarket replacement automobile lights and was fined Cdn. $1.5 million.

In making the announcement the Bureau said:

“Following a Bureau investigation, Maxzone Canada admitted to implementing an agreement with competitors to set the price of aftermarket automotive replacement lights in Canada from January 2004 to September 2008. The products, mainly headlights and tail lights, were primarily purchased by auto parts supply companies in Canada for use as replacement parts.

Today’s charges are the first to arise from this investigation and anyone with information relating to this cartel investigation is encouraged to contact the Bureau.”

This case is part of an ongoing global auto parts cartel investigation.  According to the Bureau, it is relying on its Immunity and Leniency Programs as part of its investigation.

Under the Bureau’s Immunity Program, companies or individuals implicated in criminal conduct under the Competition Act may offer to cooperate with the Bureau in its investigation and request immunity (i.e., full immunity from prosecution for criminal offences under the Act).

Under the Bureau’s Leniency Program, parties that have contravened criminal provisions of the Act that are not entitled to full immunity – for example, are not “first in” as immunity is a race – may nevertheless be eligible for leniency in sentencing.

For the Bureau’s news release see:

Aftermarket Auto Lighting Company Fined $1.5 Million for Price-Fixing

For more information about Canada’s conspiracy laws see:

Conspiracy (Cartels)

For more information about the Bureau’s Immunity and Leniency Programs see:

Immunity & Leniency

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