Bayer Group Fined $3.645 Million for its Role in Three International Cartels

OTTAWA, October 30, 2007 — The Competition Bureau announced today that the Bayer Group has pleaded guilty to participating in three international price fixing conspiracies in the rubber and chemicals industry and has been fined a total of $3.645 million.

"The Competition Bureau will not hesitate to prosecute any business, whether in Canada or abroad, that participates in price fixing cartels in the Canadian market," said Denyse MacKenzie, Senior Deputy Commissioner of Competition. "Such conspiracies prevent Canadians from reaping the benefits of a competitive marketplace, such as product choice and lower prices."

Bayer AG was fined $2.9 million for its part in a rubber chemicals conspiracy and $400,000 for its role in a nitrile rubber conspiracy. Bayer Corporation, the wholly owned U.S. subsidiary of Bayer AG, was fined $345,000 for participating in a conspiracy to fix the price of aliphatic polyester polyols made from adipic acid. In each matter, Bayer pleaded guilty to violating section 45 of the Competition Act. Under this section, any agreement between competitors to fix prices or share markets that results in an undue lessening competition in Canada is a criminal offence.

Rubber chemicals are mainly used in the production of tires, but are also used to produce other consumer products such as hoses, rubber mats, car parts and surgical gloves. Nitrile rubber is a synthetic rubber used in hoses, gaskets, seals, adhesives, footwear, construction materials and conveyor belts. Aliphatic polyester polyols made from adipic acid are combined with other chemicals to make polyurethane products. These products are used in an array of consumer products including furniture, synthetic leather and surface coatings.

Copies of the documents filed before the Federal Court in Toronto are available on the Competition Bureau's Web site or the Court Registry (Court file number 1654-07, 1655-07 and 1656-07).

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

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Marilyne Nahum
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