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International Shipping
British Airways fined US$4.1 million for air cargo price-fixing  
Date:2009-11-03 Readers:
CANADA's Competition Bureau has announced that British Airways (BA) has pleaded guilty in Federal Court and fined C$4.5 million (US$4.1 million) for involvement in an air cargo cartel affecting Canada.
BA admitted to fixing surcharges on the sale and supply of international air cargo exported on certain routes from Canada between April 2002 and February 2006, said the Competition Bureau statement.
"The fines obtained as a result of our investigation into the air cargo price-fixing conspiracy reflect the serious nature of this behaviour," said Competition Commissioner Melanie Aitken. "The bureau is committed to uncovering such anti-competitive agreements that harm Canadians and taking criminal action against conspirators."
The investigation has benefited from the cooperation of BA and other carriers through the bureau's Leniency Programme - plea bargaining Canadian style.
BA's fine brings the total money collected in the case to more than C$14.6 million. Previously, Air France, KLM, Martinair and Qantas each pleaded guilty to fixing air cargo surcharges for shipments on certain routes from Canada.
Under the Competition Act, any agreement between competitors to fix prices that results in an undue lessening of competition in Canada is a criminal offence, said the statement. Penalties for price-fixing include fines of up to C$10 million per count, imprisonment to a maximum term of five years, or a combination of both.
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