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JFTC renders recommendation to bidders for water meters procured by Tokyo Metropolitan Government

July 15/2003
Japan Fair Trade Commission

The JFTC, after conducting an investigation into bidders for water meters procured by Tokyo Metropolitan Government, today issued a recommendation to 19 companies against violation of Section 3 (unreasonable restraint of trade) of the Antimonopoly Act as follows:

1 Companies to receive recommendation

 19 companies which were engaged in manufacturing and selling water meters

2 Outline of violation

The 19 companies had been substantially restricting, contrary to the public interest, the competition in the trading field of the water meters(dry and direct-reading types with diameter of 13mm, 20mm and 25mm) procured by the Tokyo Metropolitan Government in the method of open-type designated competitive bidding, by jointly predetermining the winners and allowing them to win the bid in order to raise contracting prices, in accordance with an agreement reached by July 19, 2001 at the latest.

3 Outline of elimination measures

(1) The 19 companies shall confirm that they ceased the acts of above 2
(2)The 19 companies shall notify Tokyo Metropolitan Government and make their employees know of measures which were taken according to above 3(1) and of prevention of recurring the same kind of acts as the above2 in the future.
(3)The 19 companies shall not act the same kind of acts as the above2 in the future.

4 Due date of acceptance of the recommendation

 July 30, 2003
(The JFTC will issue a decision with same content as the recommendation if accepted; or initiate hearing procedures)

*Every announcement is tentative translation. Please refer to the original text written in Japanese.



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