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JFTC renders recommendation to bidders for construction works by City of Nagoya

June 27/2003
Japan Fair Trade Commission

The JFTC, after conducting an investigation into bidders for construction works ordered by City of Nagoya, today issued a recommendation to 106 companies against violation of Section 3 (unreasonable restraint of trade) of the Antimonopoly Act as follows:

1 Companies to receive recommendation

 106 construction companies with work in the area of Nagoya-city

2 Outline of violation

The 106 companies had been substantially restricting, contrary to the public interest, the competition in the trading field of the construction works ordered by the Housing and Urbanizing Bureau, City of Nagoya in the methods of open-type designated competitive bidding or designated competitive bidding (classes of B,C and D), by jointly predetermining the winners and allowing them to win the bid in order to prevent decline of contracting price since April 1, 1999 at the latest.

3 Outline of elimination measures

(1) The 106 companies shall confirm that they ceased the acts of above 2.
(2)The 106 companies shall notify City of Nagoya 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 106 companies shall not act the same kind of acts as the above2 in the future.
4 Due date of acceptance of the recommendation

July 1, 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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