Competition law agencies around the world are increasingly cooperating to combat global cartels. This type of criminal behaviour is unacceptable and perpetrators cannot expect to escape sanction in Canada by carrying out their illegal conduct outside the country. The charges relate to the period from 1992 to1995 and are the result of an extensive criminal investigation conducted by the Competition Bureau into a scheme designed to inflate prices of lysine and citric acid and divide world markets, including Canada. In addition, the Federal Court of Canada imposed a prohibition order on the company under the Competition Act to ensure that the company does not repeat these offences. Lysine is an amino acid feed additive used in hog and poultry feeds worldwide.
Citric acid is an ingredient in a variety of consumer products.
It is used in the food and beverage industry as a flavour enhancer and preservative to prevent food spoilage and to reduce the risks of food poisoning. It has recently found application in the manufacture of environmentally friendly detergents as a replacement for phosphates. It should be noted that the vast majority of citric acid is consumed by Canadians as an ingredient in processed foods and beverages such as tinned vegetables, fruit juices and soft drinks. As a result of these conspiracies, feed companies and farmers paid millions more to buy lysine. Similarly manufacturers of processed foods, soft drinks and detergents paid millions more for citric acid.