Competition Bureau investigation leads to over $1.6 million in fines for international nucleotide producers conspiracy

OTTAWA, August 30, 2005 - The Competition Bureau announced today that the Federal Court of Canada imposed fines totalling $1.675 million for a conspiracy to fix prices of nucleotides in Canada. Nucleotides are used as flavour enhancers in soups, sauces, spices and other foods.

Ajinomoto Co. Inc. pleaded guilty for participating in this conspiracy and was fined $1.5 million. CJ Corp. also pleaded guilty and was fined $175,000 for its participation.

"These international price fixing cartels prey on Canadian businesses and consumers by manipulating prices and competition in our marketplace," said Denyse MacKenzie, Deputy Commissioner of Competition. "The Competition Bureau will continue its aggressive prosecution of illegal cartel schemes."

The conspiracy began as early as July 1992 and continued until August 1996. During this period, representatives of Ajinomoto of Japan and CJ Corp. of Korea communicated with other producers and agreed on prices for the sale of nucleotides, including into Canada.

Ajinomoto and CJ Corp. both pleaded guilty to violating section 45 of the Competition Act. Under this section, it is a criminal offence to agree with competitors to fix prices or share markets. The maximum fine is $10 million.

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.

For media enquiries, please contact:
Maureen McGrath
Communications Advisor
Competition Bureau
819-953-8982 or 613-296-2187 (cell)

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