IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
UNITED STATES OF AMERICA,
v.
BASF AKTIENGESELLSCHAFT
Defendant.
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Criminal No.3:99-CR-200-R
Filed:May 20, 1999
Violation: 15 U.S.C. § 1
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INFORMATION
The United States of America, acting through its attorneys, charges:
I
DESCRIPTION OF THE OFFENSE
1. BASF AKTIENGESELLSCHAFT ("the defendant"), a corporation organized
and existing under the laws of Germany, is made a defendant on the charge
stated below.
2. Beginning in part at least as early as January 1990 and continuing
in part until February 1999, the exact dates being unknown to the United
States, the defendant and co-conspirators entered into and participated
in a combination and conspiracy to suppress and eliminate competition
by fixing the price and allocating the volume of certain vitamins manufactured
and sold in the United States and elsewhere, and to allocate customers
for vitamin premixes sold in the United States. The combination and
conspiracy engaged in by the defendant and its co-conspirators was in
unreasonable restraint of interstate and foreign trade and commerce
in violation of Section 1 of the Sherman Act (15 U.S.C. § 1).
3. The charged combination and conspiracy:
- consisted of a continuing agreement, understanding, and concert
of action among the defendant and co-conspirators regarding certain
vitamins manufactured by the corporate conspirators and sold by them
in the United States and elsewhere, the substantial terms of which
were to:
- fix, increase, and maintain prices and to coordinate price
increases for the sale of such vitamins in the United States
and elsewhere;
- allocate among the corporate conspirators the volume of
sales and market shares of such vitamins in the United States
and elsewhere; and,
- allocate among corporate conspirators all or part of certain
contracts to supply vitamin premixes to various customers
located throughout the United States and to refrain from submitting
bids, or to submit collusive, non-competitive and rigged bids,
therefor;
- involved a changing group of conspirators and affected, as
set forth below, a changing group of vitamins at various points
in time during the period covered by this Information, its scope
adjusting over time to the manufacturers producing certain vitamins
and participating in the combination and conspiracy; and,
- affected at least the following vitamins for the indicated
time periods during the combination and conspiracy charged in
this Information:
- vitamins A and E sold in the United States and elsewhere, from
January 1990 into February 1999;
- vitamin B2 (Riboflavin) sold in the United States and elsewhere,
from at least January 1991 into at least Fall 1995;
- vitamin B5 (CalPan) sold in the United States and elsewhere,
from January 1991 into at least December 1998;
- vitamin C sold in the United States and elsewhere, from January
1991 into at least the late Fall 1995;
- beta carotene sold in the United States and elsewhere, from
January 1991 into at least December 1998; and,
- vitamin premixes sold to customers located throughout the United
States, from January 1991 into at least December 1997.
4. For the purpose of forming and carrying out the charged combination
and conspiracy, the defendant and co-conspirators did those things that
they combined and conspired to do including, among other things:
Vitamins
- participating in meetings and conversations in the United States
and elsewhere to discuss the prices and volumes of vitamins A and
E, vitamin B2, vitamin B5, vitamin C, and beta carotene sold in the
United States and elsewhere;
- agreeing, during such meetings and conversations regarding such
vitamins, to fix, increase, and maintain prices at certain levels
in the United States and elsewhere;
- agreeing, during such meetings and conversations regarding such
vitamins, to allocate among the corporate conspirators the approximate
volume of such vitamins to be sold by them in the United States and
elsewhere;
- exchanging sales and customer information for the purpose of monitoring
and enforcing adherence to the above-described agreements;
- issuing price announcements and price quotations in accordance
with the above-described agreements;
- selling such vitamins at the agreed-upon prices and in accordance
with the agreed-upon sales volume allocations in the United States
and elsewhere;
Vitamin Premixes
- participating in meetings and conversations in the United States
and elsewhere to discuss the submission of prospective bids for contracts
to supply vitamin premixes to various customers located throughout
the United States;
- agreeing, during such meetings and conversations, which corporate
conspirator would be designated the low bidder for particular contracts
to supply vitamin premixes to various customers located throughout
the United States;
- agreeing, during such meetings and conversations, on the prices
to be submitted by the designated low bidders for particular contracts
to supply vitamin premixes to various customers throughout the United
States;
- refraining from bidding, or submitting intentionally high, complementary
and non-competitive bids, for particular contracts to supply vitamin
premixes to various customers throughout the United States; and
- selling vitamin premixes to various customers throughout the United
States at rigged and non-competitive prices.
II
BACKGROUND
5. Vitamins are organic compounds required in the diet of humans and
animals for normal growth and maintenance of life. Vitamins are essential
sources of certain coenzymes necessary for metabolism, the biochemical
processes that support life. All known vitamins have been synthesized
chemically, and various such synthesized vitamins are manufactured and
sold by the defendant and its corporate co-conspirators.
6. Vitamins are necessary for the normal and healthy growth and development
of both humans and animals. Large quantities of vitamins A and E, vitamin
B2, vitamin B5, vitamin C, and beta carotene are sold to customers in
the human food, pharmaceutical and animal feed industries. Vitamin premixes
are a blend of several vitamins and other products in either dry or
spray-on applications. Formulated and sold as additives, these vitamin
premix applications are used to enrich human food and animal feed products.
III
DEFENDANT AND CO-CONSPIRATORS
7. During the period covered by this Information, the defendant was
a corporation organized and existing under the laws of Germany, with
its principal place of business in Lugwigshafen, Germany. The defendant
is engaged in the manufacture and sale of vitamins and vitamin premixes
in the United States and elsewhere.
8. Various corporations and individuals not made defendants herein
participated as co-conspirators in the offense charged herein and performed
acts and made statements in furtherance thereof.
9. Wherever in this Information reference is made to any act, deed,
or transaction of a corporation, the allegation means that the corporation
engaged in the act, deed, or transaction by or through its officers,
directors, agents, employees, or representatives while they were actively
engaged in the management, direction, control, or transaction of its
business or affairs.
IV
TRADE AND COMMERCE
10. During the period covered by this Information, the defendant and
its co-conspirators sold and distributed a substantial quantity of vitamins
and vitamin premixes subject to the charged conspiracy in a continuous
and uninterrupted flow of interstate and foreign trade and commerce
to customers located in states or countries other than the states or
countries in which the vitamins and vitamin premixes were produced.
11.During the period covered by this Information, the activities of
the defendant and co-conspirators that are the subject of this Information
were within the flow of, and substantially affected, interstate and
foreign trade and commerce.
V
JURISDICTION AND VENUE
12. The combination and conspiracy charged in this Information was carried
out, in part, within the Northern District of Texas within the five
years preceding the filing of this Information.
ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1.
Dated: May 20, 1999
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_______________/s/________________
JOEL I. KLEIN
Assistant Attorney General
_______________/s/________________
GARY R. SPRATLING
Deputy Assistant Attorney General
_______________/s/________________
JAMES M. GRIFFIN
Director of Criminal Enforcement
Antitrust Division
U.S. Department of Justice
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_______________/s/________________
ALAN A. PASON
Chief, Dallas Office
_______________/s/________________
GREGORY S. GLOFF
MITCHELL R. CHITWOOD
Attorneys, Antitrust Division
U.S. Department of Justice
Dallas Field Office
Thanksgiving Tower
1601 Elm Street, Suite 4950
Dallas, Texas 75201-4717
Tel.: (214) 880-9401
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