Corporation Pleads Guilty to Participating in International Conspiracy to Fix Prices

OTTAWA, March 1, 2001 — The Competition Bureau announced today that the American company Carbone of America Industries Corp. has pleaded guilty to fixing prices for the product isostatic graphite in semi-machined and non-machined form. The Federal Court Trial Division in Toronto fined the company $300,000.

Isostatic graphite is a fine grain carbon product that is very strong and is resistant to heat and chemical reaction. It is commonly used for electrical discharge machinery, dies for the continuous casting of metals, and various products used in the semi-conductor industry.

Carbone was a member of an international cartel that agreed to fix prices and to divide world markets for this product. Carbone had sales of isostatic graphite in Canada estimated at approximately $1.64 million during the period of the conspiracy, which lasted from about July 1993 to February 1998. This is the Competition Bureau's first prosecution involving this product.

"International cartels frustrate competition and cause inflated prices," said Johanne D'Auray, Deputy Commissioner of Competition, Criminal Matters. "The Competition Bureau will not hesitate to use the full force of the law against companies that prey on Canadian businesses and consumers."

Certified copies of the filed documents may be obtained from the Court Registries (File T-189-01).

Indictment ( PDF: 21 KB )
Statement of Facts ( PDF: 111 KB )

The Competition Bureau is an independent law enforcement agency whose mandate is to maintain and encourage fair competition in Canada.

For more information, please contact:

Michel Marquis
Senior Advisor
Communications Directorate
819-953-4257