International Food Flavour Cartel Brings $1.675 Million in Fines

The Competition Bureau announced on August 30, 2005 that the Federal Court of Canada imposed fines totaling $1.675 million for a conspiracy to fix prices of nucleotides, a food flavour enhancer, in Canada. Ajinomoto Co. Inc., Japan's largest producer of seasonings, pleaded guilty to violating section 45 of the Competition Act by virtue of its participation in the conspiracy and was fined $1.5 million. CJ Corp. also pleaded guilty and was fined $175,000. In 2001, these same two companies pleaded guilty and paid fines in the United States for participating in this cartel. Katherine Kay of Stikeman Elliott's Competition/Antitrust Group acted for one of the defendants in this matter.

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