Canadian Competition Bureau Obtains Record Fines for Conspiracy Conviction
Following a Competition Bureau investigation, three Canadian carbonless paper sheet manufacturers (Cascades Fine Papers Group Inc., Domtar Inc. and Unisource Canada Inc.) recently pleaded guilty to conspiring to lessen competition in the supply of carbonless paper sheets in Ontario and Quebec contrary to section 45 of the Competition Act.Carbonless paper sheets are used in multiple copy forms. The demand for carbonless paper sheets has been declining for several years as a result of the development of computerized receipts.
Each of the accused was sentenced to pay a fine in the amount of $12,500,000, comprised of a $10,000,000 fine for activity in Ontario and $2,500,000 for activity in Quebec. In addition to the fines, each accused must educate its directors, officers, employees and agents about complying with the Competition Act.
This is the first time the Court has imposed the maximum $10,000,000 fine available under the Competition Act against a domestic company.
