Alternative Methods of Cartel Detection in Canada

1. Alternative Methods of Cartel Detection in Canada Remarks of Kristen PinheyCompetition Law OfficerCompetition Bureau Canada Cartel Working Group SG 1 Teleconference on Ex Officio Cartel Investigations October 14, 2014

2. Immunity and Leniency Programs • The goal of the Competition Bureau’s Immunity Program is to uncover and stop criminal anti-competitive activity and to deter others from engaging in this behaviour • The Immunity Program has proven to be the Bureau’s single most powerful means of detecting, investigating and prosecuting criminal activity under the Act • Our Leniency Program complements our Immunity Program by supporting the effective and efficient enforcement of the Competition Act

3. Other Methods of Cartel Detection • Information Centre and complaints line • Whistleblower initiative • Proactive monitoring and competitive intelligence • Partnerships with domestic and international agencies • Relationships with procurement authorities • Outreach with the business and legal communities • Public awareness of the Bureau’s mandate and programs

4. Information Centre and Complaints Line • The Information Centre is the primary point of entry for requests from members of the public • The public can contact the Bureau through the Information Centre by telephone or e-mail • We also have an online complaints form to facilitate the complaints process

5. Criminal Cartel Whistleblower Initiative • The Competition Act has a specific provision protecting the identity of a “whistleblower” • The Bureau recently announced the establishment of a new whistleblower initiative and updates to its website to provide information about how whistleblowers can contact the Bureau to report alleged criminal activity • Two of the objectives of this initiative are: • To increase the quality and quantity of whistleblower requests. • To increase the number of cases originating outside of the Immunity Program.

6. Proactive Monitoring and Competitive Intelligence • Bureau officers regularly monitor the media for potential cartel conduct • The Bureau also benefits from information sharing within the agency • Additionally, Bureau officers and management frequently liaise with international counterparts

7. Partnerships with Domestic and International Agencies • The Bureau has partnerships with several domestic agencies which complement and support the work of the Bureau, as well as strong international partnerships • On the domestic side, we are strengthening our ties with various Canadian police forces and their respective white-collar crime investigation units • On the international front, the Bureau works in partnership with its international counterparts when conducting international investigations

8. Relationships with Procurement Authorities • The Bureau provides anti bid-rigging presentations to all levels of government, including Public Works and Government Services Canada (PWGSC), the principal procurement agency of the Canadian Federal government • These outreach presentations provide procurement authorities with knowledge of how to detect, deter and report bid-rigging • We are in the process of completing a Memorandum of Understanding with PWGSC that will formalize our strong relationship with the agency

9. Outreach in the Business and Legal Communities • The Bureau regularly conducts outreach sessions with the business community • Following these presentations, the Bureau uses a post-outreach presentation survey to evaluate the effectiveness of the presentation and participants’ increased awareness • The Bureau publishes for consumers and businesses on its website

10. Public Awareness of the Bureau’s Mandate and Programs • Maintaining and improving public awareness of the Bureau’s role and mandate is a crucial feature of maintaining credible domestic enforcement programs • The Bureau regularly publishes press releases following events, such as the laying of charges and/or guilty pleas, and also publishes speeches given by Bureau officials • The Bureau’s cartel awareness efforts, particularly the media attention that large cartel and bid-rigging cases draw, increase awareness of competition law throughout the general Canadian population

11. Case Example: Quebec Gas Cartel • Investigation of retail gas stations who conspired to fix prices in local communities in Quebec • Many different investigative tools used, including wiretaps and searches • The Bureau searched 88 premises in two weeks, the largest search ever undertaken by the Bureau. • The matter is currently before the courts • 39 individuals and 15 companies have been charged • 33 individuals and 7 companies have pleaded or were found guilty, with fines totalling over $3 million • 6 individuals have been sentenced to terms of imprisonment totalling 54 months

12. Case Example: IT Services • Investigation of companies and individuals who rigged bids to obtain Government of Canada contracts for information technology services worth approximately $67 million • The matter is currently before the courts • Charges laid against 14 individuals and 7 companies • To date, 2 individuals have each pleaded guilty to one count of bid-rigging • A 3-month preliminary hearing was completed and the accused have been committed to stand trial

13. Case Example: Bid Rigging in the Construction Industry • In February 2011, the Québec provincial police force, the Sureté du Québec, created a Permanent Anti-Corruption Unit (UPAC) • The Bureau conducted a joint investigation with UPAC involving bid-rigging in the construction industry in greater Montreal area • In June 2012, a total of 77 charges were laid against nine companies and 11 individuals in in connection with a collusion scheme. These charges included 20 counts of bid-rigging against nine companies and 24 counts of bid-rigging against six individuals