Canadian agency fines Toyo Tire for bid-rigging conspiracy

Tyre and rubber component manufacturer Toyo Tire & Rubber has been fined CA$1.7 million by Canada’s Competition Bureau for its participation in an international bid‑rigging conspiracy related to the supply of anti‑vibration components to Toyota Motor Corp, and on 9 December pleaded guilty to three counts of bid rigging under the country’s Competition Act.

The Competition Bureau’s investigation found that between June 2004 and August 2006, Toyo engaged in secret agreements with other suppliers of anti‑vibration components in response to requests for quotes issued by Toyota for certain Corolla, RAV 4 and Lexus 350 RX models. To date, the Bureau’s investigation involving motor vehicle components has resulted in eight guilty pleas and over $58 million in fines imposed by the courts since April 2013.

“The Competition Bureau’s investigation into potential bid‑rigging and price‑fixing in the supply of motor vehicle components continues,” commented Stéphane Hould, deputy commissioner of competition at the Competition Bureau. “We are committed to vigorously enforcing the criminal cartel provisions of the Competition Act against those who engage in anti‑competitive conduct, including both businesses and individuals. Cracking down on cartels has been and continues to be a top priority for the bureau.”

Anti‑vibration components are rubber and metal parts of different shapes and sizes that are usually custom designed for specific automobile models in order to reduce noise and vibrations in various parts of motor vehicles.

The Bureau first learned of cartel activity in the motor vehicle components industry by way of its Immunity Program, after which it began investigating in December 2009. The investigation also benefitted from the cooperation of numerous companies under the Bureau’s Leniency Program, in which Toyo also participated.