September 11, 2014
Well summer is certainly over. The weather is distinctly cooler and “fall-like” and in the competition/antitrust law world the number of cases and antitrust agency activity is increasing again. In this respect, one interesting case that caught my eye earlier today was a German trade association case in which the German antitrust agency (the Bundeskartellamt) announced that it has imposed 6.2 million euros in further fines for alleged price-fixing by members of a concrete paving stone association and association executive (see: Bundeskartellamt imposes further fines on manufacturers of concrete paving stones on account of price-fixing agreements).
According to the Bundeskartellamt, the association’s members entered into agreements for the prices of paving stones in certain regions of Germany as part of so-called “West and East Business Meetings” (held about five times a year), to eliminate “aggressive price competition” in the sale of paving stones and participate in “concrete paving stone” market information exchanges (upon which agreed upon price increases took place).
A managing director of the companies’ trade association, who was also fined in this case, organized and moderated the companies’ meetings.
This case is a practical reminder that price-fixing, market division, output restriction and other types of “hard core” anti-competitive agreements remain a high risk area for members of trade and professional associations, including in Canada.
The case is also a bit of a caution for association executives and other personnel themselves that there can be potential risk, including criminal risk in Canada – either as a direct party or based on aiding or abetting theories – for assisting or facilitating agreements between competitors that violate competition/antitrust laws.
In this respect, competition/antitrust agencies, including in Canada, have pursued enforcement against individuals for activities as apparently innocuous at first glance as translating proceedings between parties or assisting parties to cartel arrangements with transportation to meetings.
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