A Canadian watchdog has reported fines to Japanese shipowners NYK and K Line for price-fixing in car carrier trades.
Competition Bureau Canada said both companies pleaded guilty to one count of conspiracy under the Competition Act.
NYK will pay $1.5m and K Line $460,000 after a decision by the Ontario Superior Court.
They were penalised for their role in an international conspiracy that reduced competition for the shipment of vehicles to Canada, the independent law enforcement agency said.
The companies admitted to agreeing with certain suppliers to increase the base freight rates they proposed to some vehicle manufacturers in Japan for shipments to Canada in 2008 contract talks.
In addition, K Line pleaded guilty to one count of bid-rigging under the Competition Act.
The owner admitted this involved a General Motors Co tender for routes from South Korea to Canada, covering the period from 2011 to 2012.
The companies received leniency in sentencing for their cooperation with the investigation.
“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. Cracking down on criminal collusion is a top priority for the Bureau,” said Matthew Boswell, commissioner of competition.
Fines for collusion have hit many car carrier owners across the globe in recent years.
Appeal refused in UK
In June, TradeWinds reported that the UK’s top court had refused to hear an appeal by shipowners trying to halt a £143m ($177m) legal battle over claims they operated a cartel bringing vehicles into the country.
The decision by three judges, following appeals by 10 companies including Mitsui OSK Lines, Wallenius Wilhelmsen Ocean and K Line, will allow the case to go ahead in early 2025.
The case, brought by consumer advocate Mark McLaren, is seeking compensation for British motorists who bought new cars over nine years from October 2006. He claims they were overcharged because of delivery price-fixing between the carriers.
The shipping companies had tried but failed to get the class action case kicked out because of an error by the Competition Appeal Tribunal, which is hearing the case, about how the pricing of car transport was calculated.
