Rhône-Poulenc Biochimie S.A. Sentenced To $500,000 Fine Following Competition Bureau Price Fixing Investigation

OTTAWA, February 27, 2003 — The Competition Bureau announced today that Rhône-Poulenc Biochimie S.A., a wholly owned French subsidiary of Aventis S.A., pleaded guilty in the Federal Court of Canada to a charge of price fixing under the Competition Act and was sentenced to a $500,000 fine. This international conspiracy resulted in higher prices for taxpayers for a chemical ingredient used in medical x-rays.

"Today's criminal conviction once again demonstrates the Bureau's resolve in holding foreign firms accountable for their participation in illegal anti-competitive agreements which affect Canadians, whether directly or indirectly" said Richard Taylor, Acting Senior Deputy Commissioner of Competition. "The Bureau will continue to aggressively pursue to the full extent of the law international cartels that impact the Canadian economy."

The Bureau's investigation, which started in 2000, revealed that Rhône-Poulenc Biochimie S.A, was involved in a price fixing conspiracy from 1990 through 1999. The conspiracy agreement fixed prices for methylglucamine, a specialized chemical ingredient primarily used to facilitate the recording of high contrast X-ray images.

Under the conspiracy provisions of the Competition Act it is a crime for competitors to agree on the prices that they will charge their customers, where it unduly lessens competition or unreasonably raises prices.

Copies of the documents filed before the Federal Court of Canada, Trial Division, in Ottawa, are available on the Competition Bureau's web site at www.cb-bc.gc.ca. Certified copies of the filed documents may be obtained from the Court Registry - (Court File number T287-03).

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

Court Documents
Agreed Statement of Facts (PDF: 216 KB)
Indictment (PDF: 74 KB)

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