A Costly Conspiracy
Two of the leading names in the maritime industry, Nippon Yusen Kaisha (NYK) and Kawasaki Kisen Kaisha (K Line), have found themselves slapped with charges amounting to nearly C$2m. The Ontario Superior Court found them guilty of their role in an international conspiracy that undercut competition in car shipment to Canada. The shipping conglomerates had to plead guilty to a single count of conspiracy by Canada’s Competition Act. NYK and K Line were thus sentenced to pay fines of C$1.5m and C$460,000 respectively.
Looking Back to Move Forward
Tracing back to 2008, the plot unfolded where NYK and K Line confessed to colluding with particular suppliers. They aimed to inflate foundational freight rates suggested to specific car manufacturers in Japan. These charges were for the provision of roll-on/roll-off (roro) services for car shipments directed to Canada. In a surprising turn of events, K Line also admitted guilt on a bid-rigging charge. They confessed to partaking in a bid-rigging agreement, specifically for a General Motors Company tender. This encompassed roro shipping services, including routes originating from South Korea, directed towards Canada for contracts covering 2011-2012.
Leniency in Light of Cooperation
These companies, both of whom have encountered numerous cartel investigations in divergent jurisdictions worldwide, were offered sentencing leniency. This was in return for their spirited cooperation with the Competition Bureau’s investigation. It served as a poignant reminder of the importance of adherence to laws and regulations in the global marketplace.
Global Cry for Fair Trade
Matthew Boswell, the Commissioner of Competition, spoke on this matter, asserting their ongoing commitment to curbing, “criminal collusion.” He said, “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.” The underlying tone of his message was clear – every company operating in Canada is expected to conduct business using fair and ethical means. This case is just one amongst an increasing number of anti-competition cases worldwide that inspire companies to reassess their conduct and uphold ethical business standards.
