NYK and “K” Line Fined in Canadian Antitrust Probe
Japanese shipping companies NYK and “K” Line have been fined CAD $1.5 million and CAD $460,000, respectively, by the Ontario Superior Court for their involvement in a conspiracy to reduce competition for shipping vehicles to Canada.
Both companies pleaded guilty to one count of conspiracy under the Competition Act. Several companies admitted to agreeing with suppliers to increase freight rates proposed to certain vehicle manufacturers in Japan for roll-on/roll-off shipments to Canada during fiscal year 2008 contract negotiations.
“K” Line also pleading guilty to one count of bid-rigging, admitting that it entered into a bid-rigging agreement for a General Motors Company tender for roll-on/roll-off shipping services for contracts in 2011 to 2012 which included routes from South Korea to Canada,
The companies received leniency in sentencing for cooperating with the Competition Bureau’s investigation.
“Our investigation into international shipping conspiracies sends a clear message to the global marketplace: if you do business in Canada, you must comply with the law,” said Matthew Boswell, Canada’s Commissioner of Competition. “Cracking down on criminal collusion is a top priority for the Bureau.”
“K” Line and NYK are among a handful of shipping companies charged in anti-trust probes in several jurisdictions around the world in relation to roll-on/roll-off shipping services dating back to the 2000’s.
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