Pavex to pay $150,000 in territory allocation settlement in Saguenay-Lac-Saint-Jean

GATINEAU, QC, March 20, 2025 /CNW/ - Pavex Ltd. will pay $150,000 for entering into illegal agreements with competitors through a former employee.  The agreements allocated territories for paving contracts awarded by the ministère des Transports du Québec. 

This payment is part of a settlement reached between the Public Prosecution Service of Canada and Pavex, and filed today in the Superior Court of Quebec. As part of the settlement, the company has also implemented a corporate compliance program designed to prevent its employees from engaging in other anti-competitive activities. 

The settlement stems from an investigation by the Competition Bureau into a scheme that targeted public contracts in the Saguenay-Lac-Saint-Jean, Quebec region between 2008 and 2010. It brings an end to the Bureau's investigation into the role of this company in this matter.

This is the second agreement reached with a company specializing in road works in relation to this scheme. 

Quotes

"Illegal agreements between competitors, such as those involving the allocation of markets or territories, are serious crimes that drive up prices, which has significant consequences on Canadians' portfolios. We are doing everything in our power to stop these anti‑competitive practices and ensure that the companies and individuals who benefit from them are held accountable before the courts."

Matthew Boswell,
Commissioner of Competition

Quick facts 

• Allocating contracts, customers or territories between competitors is illegal under the Competition Act.
• Another company specializing in road works involved in this scheme, Inter‑Cité Construction Ltée, has also reached a settlement agreement with the Public Prosecution Service of Canada and has been ordered to pay $150,000.
• The investigation by the Competition Bureau was launched following an immunity application from Sintra Inc., submitted through its Immunity and Leniency Program.
• When the Competition Bureau finds evidence of a criminal offence, it refers the matter to the Public Prosecution Service of Canada. The PPSC then decides whether charges should be brought and exercises the authority for any resulting prosecution.
• Any person who believes that they are involved in an illegal agreement with their competitors may submit an application for immunity or leniency in exchange for their cooperation in the Bureau's investigation through the Immunity and Leniency Programs.
• Anyone who believes that the company they work for has entered into an illegal agreement with its competitors can report it through the Bureau's whistleblowing initiative. The Bureau will keep the identity of the whistleblower confidential.
• The Bureau strongly encourages anyone who suspects a business or individual of engaging in illegal agreements, such as bid-rigging, price-fixing, market allocation, supply restriction or wage‑fixing and no‑poaching agreements, to report it through its online complaint form.

Associated links

• Bid-rigging, price-fixing and other agreements between competitors
• Avoiding business collusion and bid-rigging
• Preventing bid-rigging: Tips for tendering authorities
• Bid-rigging: Compete legally!
• Inter-Cité Construction to pay $150,000 in territory allocation settlement

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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

SOURCE Competition Bureau

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