Japanese shipping companies Nippon Yusen Kaisha (NYK) and Kawasaki Kisen Kaisha (K Line) have been fined a total of nearly C$2m ($1.34m) by Ontario Superior Court for their involvement in an international conspiracy that reduced competition for the shipment of vehicles to Canada.
The car carrier operators each pleaded guilty to one count of conspiracy under Canada’s Competition Act and were sentenced to pay C$1.5m and C$460,000, respectively.
In the case dating back to 2008, NYK and K Line admitted to agreeing with certain suppliers to increase the base freight rates they proposed to certain vehicle manufacturers in Japan for the supply of roro services for shipments to Canada.
K Line also pleaded guilty to one count of bid-rigging, admitting to entering into a bid-rigging agreement for a General Motors Company tender for roro shipping services, including routes from South Korea to Canada, for contracts covering the period from 2011 to 2012.
Both companies, with histories of car carrier cartel investigations in many other jurisdictions, received leniency in sentencing for their cooperation with the Competition Bureau’s investigation.
“Our investigation into international shipping conspiracies sends a clear message to the global marketplace: if you do business in Canada, you must comply with the law. Cracking down on criminal collusion is a top priority for the Bureau,” said Matthew Boswell, commissioner of competition.
