WASHINGTON (AFP) - The US division of Germany's Bayer AG agreed to pay a 33 million dollar fine to settle charges it participated in a conspiracy to fix prices of a commonly used chemical for plastics and other goods, US officials said.
The Justice Department said that in the agreement, Bayer Corp. pleaded guilty to criminal charges of conspiring to fix prices of polyester polyols, used in plastic grocery bags, textiles, shoe soles and automotive parts.
A one-count felony charge filed in San Francisco federal court alleges that the US unit of the German chemical and pharmaceutical group Bayer AG conspired from 1998 to 2002 with "an unnamed producer and unnamed individuals to suppress and eliminate competition in the United States" for the chemical.
"Today's charge represents a significant step in our continuing effort to eliminate illegal cartel activity," said R. Hewitt Pate, head of the Justice Department's antitrust division.
The charge was the first in "an ongoing investigation of this product," according to a Justice Department statement.
According to the Justice Department, polyester polyols are used in automotive coatings, filters, belts, seals and gaskets, adhesives, sound-proofing products, and textiles. It can be added to other chemicals to improve tensile strength and resistance to abrasion.