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ANA to Pay $73 Million Fine for Price Fixing
WASHINGTON – All Nippon Airways Co. Ltd. (ANA) has agreed to plead guilty and pay a $73 million criminal fine for its role in two separate conspiracies to fix prices in the air transportation industry.
According to a two-count felony charge filed today in U.S. District Court for the District of Columbia, Japan-based ANA engaged in a conspiracy to fix one or more components of cargo rates charged for international air cargo shipments from at least as early as April 1, 2000, until at least Feb. 14, 2006. ANA is also charged with engaging in a conspiracy to fix unpublished passenger fares on tickets purchased in the United States from at least as early as April 1, 2000, until at least April 1, 2004.
Under the plea agreement, which is subject to court approval, ANA has also agreed to cooperate with the ongoing antitrust investigation. ANA transports a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights, including to and from the United States. ANA also transports passengers on scheduled flights within Japan and internationally, including to and from the United States.
The charges state that ANA carried out the conspiracies by agreeing during meetings and other communications on certain components of the cargo rates to be charged for shipments on routes between the United States and Japan, and on unpublished passenger fares to be charged on tickets purchased in the United States. As part of the conspiracies, ANA levied cargo rates and unpublished passenger fares in accordance with the agreements reached, and monitored and enforced adherence to the agreed-upon cargo rates and unpublished passenger fares.
ANA is charged with two counts of price fixing in violation of the Sherman Act, which carries a maximum fine for corporations of $100 million for each violation committed after June 22, 2004, and $10 million for violations committed before that date. The maximum fine for each count may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charge, as a result of this investigation, a total of 19 airlines and 14 executives have been charged in the ongoing investigation into price fixing in the air transportation industry. To date, more than $1.6 billion in criminal fines have been obtained and four executives have been sentenced to serve prison time. Charges are pending against the remaining 10 executives. The public is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm, or call the FBI’s Washington Field Office at 202-278-2000 with information concerning price fixing or other anticompetitive conduct in the air transportation industry.
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Key Facts
- State: District of Columbia
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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