Competition Bureau Imposes Record-Setting Bid-Rigging Fines, But Jurisdictional Questions Remain

In cases heard barely two weeks apart, Canada's Competition Bureau obtained record-setting fines against two Japanese auto parts suppliers that pleaded guilty to bid-rigging charges. Although these significant penalties (obtained under the Bureau's leniency program) are a strong milestone for the Bureau's enforcement program, issues remain as to whether Canada can establish subject-matter jurisdiction over bid-rigging arrangements concluded entirely in offshore jurisdictions.

In the first case, on April 4, 2013, Furukawa Electric Co., Ltd. pleaded guilty in Superior Court on a single-count indictment charging bid-rigging in relation to the supply of electrical boxes to be used in 2001 and 2006 model years Honda Civics manufactured in Canada. As is typical in these cases, the plea took place under a plea agreement that included a public statement of admissions filed with the Court. The notable features of the admissions are that Furukawa has no facilities in Canada,