Heading to Jail
When we cover the chapter on anti-trust laws, I like to point out to students that price fixing is a crime with not just civil penalties, but also criminal penalties. We don't see many executives going to jail for it, but it does happen.
Two Japanese auto suppliers are paying fines totaling $548 million in a criminal price-fixing conspiracy case involving parts sales to U.S. automakers, the Justice Department said today.
One supplier, Yazaki will pay a $470 million fine and the other, Denso, will pay $78 million. The Yazaki fine was the second-largest criminal fine obtained for a Sherman Act antitrust violation. In addition, four Yazaki executives, all Japanese citizens, will serve up to two years in U.S. prison as part of the deal to plead guilty to one felony count, the Associated Press reports.
Remember that in the US, price fixing is always illegal.