Yokohama Rubber Traded Immunity for Information in Cartel Case

It has been reported that Yokohama Rubber provided evidence against its former associates involved in the recent price fixing controversy in exchange for immunity, allowing the US Justice Department to the break the international price cartel that included Dunlop Oil & Marine, Trelleborg Industrie SAS and domestic rival Bridgestone. The information Yokohama Rubber supplied led to the May arrests of eight senior company officials.

The Justice Department claims that the eight men had met in the United States, Bangkok and London on numerous occasions since 1999 in order to predetermine which company would be awarded contracts. They are also suspected of manipulating the tender prices for marine hoses.

The deal struck by Yokohama Rubber was made possible thanks to a policy established by the US Justice Department in the 1990s that allows for the granting of immunity to companies who voluntarily report their involvement in anti-trust practices. The Justice Department reportedly made an offer of immunity to Yokohama Rubber last year following the arrest on separate charges of an agent employed by Yokohama Rubber. The agent informed US authorities about Yokohama Rubber’s involvement in the marine hose cartel.

Yokohama Rubber agreed to the Justice Department’s deal as it had not been an active member of the cartel since 2004, following accusations of collusive practices by Japan’s Fair Trade Commission. Documents and other evidence related to the cartel were handed over and investigators then used Yokohama Rubber’s contact details to e-mail a UK based consultant who is believed to have co-ordinated the cartel’s dealings in exchange for a £25,000 annual fee from each participating company.

A meeting – the first for several years – was organised for early May at a hotel in Houston, Texas. As the meeting concluded US investigators made their move, arresting all of the participants except for the Yokohama Rubber representative. The company has also sought immunity from authorities in Japan, the UK and the EU, and is continuing to help with investigations.