Competition Bureau Investigation Leads to $1.4 Million Fines in International Price Fixing Conspiracy Case

OTTAWA, July 30, 2001 — An international investigation by the Competition Bureau in the food industry led to the conviction, in Quebec Superior Court today, of Japan-based Ueno Fine Chemicals Industry Ltd.(UFCI) which pleaded guilty to charges of price fixing and volume allocation. The company was sentenced to pay a $1,250,000 fine and one of its former senior executives received a $150,000 fine for his part in the conspiracy.

"I am pleased to see that our international investigations into companies and individuals who engage in price fixing and market sharing conspiracies are resulting in convictions and substantial fines," said Johanne D'Auray, Deputy Commissioner of Competition, Criminal Matters Branch. "We will continue to prosecute these types of activities in order to ensure that Canadians are not subjected to these criminal business practices that adversely affect the price of consumer goods."

The Bureau's investigation, which started in 1998, revealed that UFCI was involved in an international price fixing and market sharing conspiracy for more than 17 years, affecting price levels of preservatives used in the food industry. The conspiracy fixed prices for sorbic acid and potassium sorbate, otherwise known as "sorbates", which are primarily used as mold inhibitors in foods such as dairy products, bakery products, flavours and spices, syrups and other processed foods commonly sold in grocery stores.

Ueno Fine Chemicals Industry Ltd. is the fourth international company to be convicted of such offences in Canada over the last three years. On September 19, 2000, Daicel Chemical Industries, Ltd., of Japan, was convicted of price fixing and volume allocation and Daicel's former Director of Organic Chemicals was convicted for his role in the same conspiracy. Previously, on October 26, 1998, Hoechst AG, of Germany, was convicted of price fixing and volume allocation and Eastman Chemical Company, of the United States, was convicted for price fixing in the conspiracy. All convictions result from charges laid under section 45 (1) (c) of the Competition Act.

Copies of the documents filed before the Quebec Superior Court, Criminal Division, in Montreal, will be 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 Registries -

(Court File numbers 500-73-001599-014 and 500-73-001600-010).

The Competition Bureau is an independent law enforcement agency which ensures that all Canadians enjoy the benefits of a fair and competitive economy, low prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

Copies of the documents filed before the Quebec Superior Court, Criminal Division, in Montreal, are available here (PDF only):

Ueno Fine Chemicals Industry Ltd.
Agreed Statement of Facts (10 KB)
Indictment (6.7 KB)

Yoshiyuki Ebara
Agreed Statement of Facts (12 KB) 
Indictment (6.73 KB)

For media enquiries, please contact:

Eric Glaude
Communication Officer
Competition Bureau
819-994-0349

For general enquiries or information regarding the Competition Act, please contact:

Competition Bureau's Information Centre
819-997-4282 or 1-800-348-5358