Japanese industrial giants Canon and Toshiba have agreed to pay a $5 million fine to settle charges that the firms violated U.S. antitrust laws when Canon acquired Toshiba's medical systems division in 2016.
The U.S. Securities and Exchange Commission (SEC) had charged that the companies violated U.S. laws regarding premerger notification and waiting periods as stipulated by the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act). Particularly, the SEC charged that the companies allegedly "devised a scheme" designed to complete the deal by March 31, 2016, specifically to avoid inspection and reporting requirements under the HSR Act.
The SEC charged that Toshiba wanted to complete the sale before that date so that proceeds from the deal would fall into its 2015 fiscal year and help ameliorate losses at the parent company that had compelled Toshiba to seek a buyer for the medical systems division.
Toshiba and Canon will each pay $2.5 million under the settlement. The Toshiba medical division is now Canon Medical Systems.
