Authorities on Thursday charged Nestle, Mars and a network of independent wholesale distributors in an alleged criminal conspiracy to fix prices of chocolates in Canada. An investigation prompted by a whistleblower's tips uncovered "evidence suggesting that the accused conspired, agreed or arranged to fix prices of chocolate products," the Competition Bureau said in a statement.
Competition Commissioner John Pecman called their alleged actions "egregious anti-competitive behaviour that harms Canadian consumers" and "a serious criminal offence." Three individuals were also charged: Robert Leonidas, former president of Nestle Canada; Sandra Martinez, former president of Confectionery for Nestle Canada; and David Glenn Stevens, head of Canadian food distributor ITWAL.
If convicted, they face a fine of up to Can$10 million (US $9.75 million) and, or imprisonment for a term of up to five years. Officials said Hershey Canada Inc, an alleged co-conspirator, co-operated with its investigation and agreed to plead guilty at a hearing on June 21 in exchange for leniency.