Criminal cartel provisions came into effect in March 2010 which created a dual-track approach to cartel prohibition. The criminal track is intended for prosecution of “hard-core” cartels. Amendments to section 45 of the Competition Act provide that any person who conspires, agrees or arranges with a competitor:

• to fix, maintain, increase or control the price for the supply of a product;
• to allocate sales, territories, customers or markets for the production or supply of a product; or
• to fix, maintain, control, prevent, lessen or eliminate the production or supply of a product,

is guilty of an indictable offence and liable to imprisonment for a term not exceeding 14 years or to a fine not exceeding $25 million, or to both. Proof of impact on competition is not a requisite element of the offence. Conviction requires proof of the offence beyond a reasonable doubt.

Republished with permission from Global Legal Group Ltd.

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