
Competition Bureau Investigation Leads to Record Fine in Domestic Conspiracy - Fine Paper Merchants Sentenced to pay $37.5 Million; Key Personnel to be Removed Canadian Competition Bureau \|\| January 11, 2006 The Competition Bureau announced today that Cascades Fine Papers Group Inc., Domtar Inc. and Unisource Canada, Inc. each pleaded guilty in the Superior Court of Justice in Toronto to two counts of conspiring to lessen competition unduly contrary to section 45 of the Competition Act. Each company was sentenced to record fines of $12.5 million for their part in the domestic conspiracy of carbonless sheets. A prohibition order was issued against the companies and key personnel involved in the conspiracy will be removed from their positions in the paper merchant business. "Conspiracies of this nature destroy competition by interfering with private markets and hurt both business and consumers," said Sheridan Scott, Commissioner of Competition. "These record fines reflect the serious nature of this criminal behaviour and put corporate executives and employees on notice that they are accountable for their actions." The Bureau's investigation, which began in 2002, revealed that the convicted companies conspired to avoid competing with one another in the carbonless sheet markets in Ontario from October 1999 to September 2000, and during 2000 in Quebec, contrary to section 45 of the Competition Act. Carbonless sheets are used by commercial printers in the manufacture of forms and receipts. Article Posted at www.KnowledgeDrivenRevolution.com The accused corporations admitted that the illegal agreements extended to:respecting each other's market share to stabilize prices; coordinating a response to a new market entrant; implementing a common discount program; maintaining price discipline to avoid a price war; and sharing sales and pricing data. Each of the companies shall pay the maximum $10 million fine for their behaviour in Ontario - the first time the Court has imposed the maximum for a domestic conspiracy - and a $2.5 million fine for their illegal activity in Quebec. The previous record fine for a domestic corporation in a conspiracy was $2.5 million. The Court ordered that each company is prohibited from the continuation and repetition of the offences or the commission of any offence contrary to sections 45 or 61 of the Competition Act. The companies must educate its directors, officers, employees and agents about complying with the Competition Act and inform them of the identity of the key personnel removed from positions in their paper merchant businesses. For three years, each company must provide written proof of compliance with the prohibition order. For five years, each company must also provide any additional information or records requested by the Commissioner for the purpose of monitoring compliance. The Competition Bureau is an independent law enforcement agency that promotes and maintains competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act About KDR \| \| Home \| \| Weekly Features Archive	Weekly Weekly Features Archive
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Competition Bureau Investigation Leads to Record Fine in Domestic Conspiracy - Fine Paper Merchants Sentenced to pay $37.5 Million; Key Personnel to be Removed

Canadian Competition Bureau || January 11, 2006

The Competition Bureau announced today that Cascades Fine Papers Group Inc., Domtar Inc. and Unisource Canada, Inc. each pleaded guilty in the Superior Court of Justice in Toronto to two counts of conspiring to lessen competition unduly contrary to section 45 of the Competition Act.

Each company was sentenced to record fines of $12.5 million for their part in the domestic conspiracy of carbonless sheets. A prohibition order was issued against the companies and key personnel involved in the conspiracy will be removed from their positions in the paper merchant business.

"Conspiracies of this nature destroy competition by interfering with private markets and hurt both business and consumers," said Sheridan Scott, Commissioner of Competition. "These record fines reflect the serious nature of this criminal behaviour and put corporate executives and employees on notice that they are accountable for their actions."

The Bureau's investigation, which began in 2002, revealed that the convicted companies conspired to avoid competing with one another in the carbonless sheet markets in Ontario from October 1999 to September 2000, and during 2000 in Quebec, contrary to section 45 of the Competition Act. Carbonless sheets are used by commercial printers in the manufacture of forms and receipts.

Article Posted at www.KnowledgeDrivenRevolution.com

The accused corporations admitted that the illegal agreements extended to:respecting each other's market share to stabilize prices;

coordinating a response to a new market entrant;

implementing a common discount program;

maintaining price discipline to avoid a price war; and

sharing sales and pricing data.

Each of the companies shall pay the maximum $10 million fine for their behaviour in Ontario - the first time the Court has imposed the maximum for a domestic conspiracy - and a $2.5 million fine for their illegal activity in Quebec. The previous record fine for a domestic corporation in a conspiracy was $2.5 million.

The Court ordered that each company is prohibited from the continuation and repetition of the offences or the commission of any offence contrary to sections 45 or 61 of the Competition Act. The companies must educate its directors, officers, employees and agents about complying with the Competition Act and inform them of the identity of the key personnel removed from positions in their paper merchant businesses. For three years, each company must provide written proof of compliance with the prohibition order. For five years, each company must also provide any additional information or records requested by the Commissioner for the purpose of monitoring compliance.

The Competition Bureau is an independent law enforcement agency that promotes and maintains competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act

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