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JFTC filed an accusation with Prosecutors Office in relation to a bid rigging case on purchase of water meters by Tokyo Metropolitan Government

July 2/2003
Japan Fair Trade Commission

The Japan Fair Trade Commission, having investigated into a bid rigging case concerning water meters purchased by Tokyo Metropolitan Government, considers that a crime violating the Antimonopoly Act exists and today filed an accusation with the Public Prosecutor General against 4 companies and 5 individuals who have been engaged in sale of water meters by the 4 companies etc. according to Section 73 (1) of the Act.

1. Accused parties

(1) Works on repairing water supply equipments (2 recommendations were issued concerning these works)
 Aichi Tokei Denki K.K. (Nagoya-city.)
Kimmon Seisakusho K.K (Tokyo)
Ricoh Elemex Corporation (Nagoya-city)
Toyo Keiki Co.,Ltd (Matsumoto-city)

(2) 4 individuals who have been engaged in sale of water meters by the 4 companies to Tokyo Metropolitan Government and 1 individual who had been engaged in the same kind of sale by Takahata Kogyo K.K., a seller of water meters until March 31, 2002

(Note) Takahata Kogyo K.K. is not an object of the accusation because it was merged by Takahata Seiko Corporation and disbanded on April 1, 2002.

2. Ground for the accusation

(1) Fact
The four companies and Takahata Kogyo K.K. and the five individuals,together with employees of 14 manufacturers of water meters agreed that they would decide in advance the winner of a tender for water meters purchased by Tokyo Metropolitan Government and would bid at a price convenient for the winner to win. The accused companies and the 14 companies substantially restricted competition contrary to the public interest, in the trading field of the water meters on which Tokyo Metropolitan Government called for bids on July 19, 2001, by mutually restricting and conducting their business activities, deciding the winner according to the agreement.

(2) Relating laws
Section 89 (1)(i), Section 95 (1)(i)(before the amendment by Act No.47 of 2002),Section 3 of the Antimonopoly Act, Section 60 of Criminal Code

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



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