ACR-News

EMBRACO North America Inc has been fined £925,000 by a Canadian court after pleading guilty to criminal charges that it fixed the price of hermetic refrigeration compressors sold to a Candian domestic refrigerator and freezer manufacturer.
The latest fine follows the US$91.8m price-fixing fine imposed on Embraco at the end of September by a US court and a $56.5m fine to settle cartel allegations in Brazil last October.

Cartel investigations came to light in February last year following raids by anti-trust authorities on a number of refrigeration compressor manufacturers' offices across Europe, the US and Brazil.

In this latest case, Canada' Competition Bureau claimed that between January and December 2005, Embraco conspired with its competitors to fix the price of hermetic refrigeration compressors sold in Canada and elsewhere. The compressors, manufactured at Embraco's Brazilian factory, were primarily sold to WC Wood Corporation, located in Guelph, Ontario, and used in the manufacture of various brand-name chest freezers.

The Bureau said that prior to negotiating its annual supply contract, Embraco and another competitor exchanged information on their hermetic refrigeration compressor prices, production capacities and other market intelligence. Embraco and its competitor reached an agreement that they would increase prices for hermetic refrigeration compressors sold to WC Wood.

The Canadian Bureau's investigation into the alleged conduct of other hermetic refrigeration compressor manufacturers continues.