Tag Archives: Competition Act

Competition Bureau secures second-largest fine in Canadian bid-rigging history

On April 1, 2016, the Competition Bureau and the Public Prosecution Service of Canada (PPSC), formerly the Federal Department of Justice, secured their ninth guilty plea in the Bureau’s years-long investigation of the Japanese auto parts industry. .The Showa Corporation—a Japanese manufacturer and supplier of auto parts—pleaded guilty in Court to one count of bid-rigging under section 47 of the Competition Act. The Showa Corporation was sentenced to pay a fine of $13 million—the second largest fine ever ordered by a Canadian court for a bid-rigging offence.

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How Canada’s New Debarment Policy Impacts Criminal Investigations

On July 3, 2015, the Government of Canada introduced a new and controversial procurement policy with serious repercussions should a company be charged with certain criminal offences.

The Department of Public Works and Government Services Canada’s (PWGSC) Ineligibility and Suspension Policy [1] states that if a person or company is charged criminally, they may be barred (also known as “debarment”) from doing business with the federal government for up to ten years.

For individuals and corporations who do, or want to do, business with the Canadian government, this policy is a game changer. Such companies must now consider if and how they can avoid being charged.

Many companies already take steps to avoid criminal prosecution. But in an increasingly complex business world, where companies have operations globally, the risk of running afoul of the law, both at home and abroad, cannot be eliminated. Recent changes to Canada’s Criminal Code, which have expanded who within a company can create criminal liability for a corporation, have increased this risk.

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