Du Pont Performance Elastomers fined $4 million for price fixing (September 01, 2007)
Du Pont Performance Elastomers L.L.C. (DPE) pleaded guilty and was fined $4 million by the Superior Court of Justice in Ottawa for its role in an international conspiracy to fix prices of polychloropr...
Du Pont Performance Elastomers L.L.C. (DPE) pleaded guilty and was fined $4 million by the Superior Court of Justice in Ottawa for its role in an international conspiracy to fix prices of polychloroprene rubber, according to Competition Bureau Canada.
Under section 45 of Canada’s Competition Act, it is a criminal offence to agree with competitors to fix prices or share markets.
Polychloroprene rubber, a specific type of synthetic rubber, is used in the manufacture of a wide range of consumer products in the automotive, adhesive and construction industries, such as hoses, transmission belts and cables. It is also known as chloroprene rubber, polychloroprene, PCP or neoprene.
“The Competition Bureau protects consumers and businesses against price fixing agreements and does not hesitate to prosecute any business, whether located in Canada or abroad, that engages in these illegal activities affecting the Canadian market,” said Denyse MacKenzie, Senior Deputy Commissioner of Competition. “Price fixing agreements harm Canadian businesses and consumers by forcing them to pay higher prices for the goods and services they purchase.”
From August 1999 to April 2002, DPE and co-conspirators agreed to fix the prices of polychloroprene rubber sold in the North American market, the Competition Bureau said. Sales of the product were approximately $50 million for the relevant period and DPE’s share of the market represented approximately 70 per cent.