Auto parts firms agree to pay California $23 million in antitrust probe (updated)
04/12/2019 21:03
(Adds Denso comment, other settlement)
WASHINGTON, Dec 4 (Reuters) - A group of 52 auto parts
manufacturers has agreed to pay California $23 million as part
of a decade-old investigation into antitrust law violations
stemming from illegal bid rigging, the state said on Wednesday.
Following an investigation by the U.S. Justice Department
that began about 10 years ago, 46 companies agreed to pay a
total of nearly $3 billion in fines while pleading guilty to
price-fixing and bid-rigging in the auto parts industry.
More than 22 million cars are registered in California, the
most of any U.S. state.
The largest California settlement is with Japan's Denso Corp
6902.T for $4.25 million, California Attorney General Xavier
Becerra said in a statement.
Denso said on Wednesday it "has instituted extensive
group-wide efforts to ensure we are in total compliance with
applicable antitrust laws." The company added it is "committed
to taking any action necessary to ensure Denso remains in
complete accordance with applicable antitrust laws."
In 2013, the Justice Department said international price
fixing conspiracies affected more than $5 billion in automobile
parts used in U.S. vehicles; in total, more than 25 million cars
purchased by American consumers were affected.
Denso pleaded guilty to price-fixing in 2012 and agreed to
pay a $78 million fine to settle a Justice Department probe. A
total of 32 auto parts executives also pleaded guilty, including
several Denso executives.
Law enforcement authorities in the United States and
elsewhere have brought price-fixing cases related to seat belts,
radiators, windshield wipers, air-conditioning systems, power
window motors and power steering components among other parts.
A separate settlement has been reached for up to $1.2
billion covering auto purchasers who sued saying the price
fixing and bid rigging had caused millions of consumers and
businesses from around the country to pay more for some new or
leased vehicles and replacement parts.
Other California settlements include nearly $1 million for
Toyoda Gosei Co 7282.T signed last month.
(Reporting by David Shepardson in Washington
Editing by Matthew Lewis and David Gregorio)
((David.Shepardson@thomsonreuters.com
+1 202 898-8324))