The Competition Bureau garnered its first conviction under the amended conspiracy provision of the Competition Act yesterday, as Domfoam International Inc. and Valle Foam Industries (1995) Inc. plead guilty to conspiracy and were fined $12.5 million.
The investigation into the price-fixing of polyurethane foam has been ongoing since February 2010 and received cooperation through both the Immunity and Leniency Programs of the Competition Bureau.
Four charges were laid: two under the amended provision from March to July 2010 (fine of $2.5 million) and two under the old provision for price-fixing between January 1999 and March 2010 (fine of $10 million).
In February, 2010, Vitafoam Inc. and Vitafoam Canada informed the Antitrust Division of the US Department of Justice of their participation in a cartel.
Class actions were launched in Quebec in October 2010 against Vitafoam Inc. and Vitafoam Canada and in British Columbia in September 2010 against Vitafoam Inc., and Vitafoam Canada, as well as Domfoam International Inc., Valle Foam Industries (1995) Inc. and others for price-fixing of polyurethane foam.