crime

U.S. charges two Japanese auto-parts firms with price-fixing

11 Comments

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© 2016 AFP

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11 Comments
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The problem with price fixing is that is culturally accepted in Japan. You see examples of price fixing in Japan every day, even though it is no less illegal in japan than it is in America. You'll see it even more clearly as the yen strengthens, yet somehow the prices of imported goods are not reduced to reflect the exchange rate.

8 ( +9 / -1 )

Nobody likes price fixing but many people think the bigger problem is how US antitrust regulators shaking down companies for multi-million dollar settlements without ever presenting their evidence or having it tested in court.

The way it works is they get an anonymous tip off, they do very little investigation because they don't have the resources, they hold a public press conference announcing massive potential fines, but eventually they make a settlement offer for pennies on the dollar where the company is allowed to make no admission of guilt. Even if these companies are entirely innocent, it makes more financial sense to just accept the settlement to avoid even higher legal fees to defend themselves. A few years ago The Economist had a good article on how this sort of shakedown has become popular in America.

-5 ( +3 / -8 )

In times of recession, a legal industry that generates huge amounts of fine payments helps the economy.

-1 ( +2 / -3 )

As always, Masters of subterfuge.

1 ( +2 / -1 )

The evidence was in front of a grand jury, so may go to trial in court

2 ( +2 / -0 )

@Meiyouwenti.... Japan might be in recession but not the USA. You see we repriced real estate and sold off all the bad debt whereas Japan is still trying to get over the bubble collapse from 25 years ago. Pull your head out of the sand.

0 ( +1 / -1 )

Time for the bows - oh wait this is America, so it won't work. Send these people to jail and see how much their bowing does there.

1 ( +1 / -0 )

Price fixing by Japanese auto parts makers cheat auto makers in USA. Toyota, Nissan, etc. Used to be victims. From to Time Bridgestone was caught, fixers are Japanese parts makers and victims are subsidiaries of Japanese automakers in USA. By preventing price fixing,, USA is protecting American consumers.

1 ( +1 / -0 )

Common practice across the board in Japan. I guess they actually do something about it in the states.

-1 ( +0 / -1 )

M3M3M3 - I actually read the same Economist article. Not sure what your comment got 6 down votes. I think if people read the article they may see this is plausible. I'll try to find a link to it

1 ( +1 / -0 )

@Tokyo-Engr

Thanks. There were 2 articles. One is behind a paywall but here is the shorter free version for anyone who's interested.

http://www.economist.com/news/leaders/21614138-companies-must-be-punished-when-they-do-wrong-legal-system-has-become-extortion

0 ( +0 / -0 )

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