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JFTC issues recommendation to participants in biddings for survey works and construction consultation works ordered by Nagano Construction Office of the Nagano Prefectural Government

November 18/2003
Japan Fair Trade Commission

The JFTC, following an investigation into participants in bidding for survey works and construction consultation works ordered by the Nagano Construction Office of the Nagano Prefectrural Government, hereby issues the following recommendation based on the stipulations of Section 48 (2) of the Antimonopoly Act to 45 companies stating that they are in violation of the stipulations of Section 3 (unreasonable restraint of trade) of said Antimonopoly Act.

1. Concerned companies

a. Persons related to survey work

Thirty-five companies conducting survey work in the jurisdiction of the Nagano Construction Office (hereinafter referred to as “the 35 companies”)

b. Persons related to construction consultation work

Forty-three companies conducting construction consultation work in the area of the Nagano Construction Office (hereinafter referred to as “the 43 companies”)

2. Outline of violation

a. Survey work

The 35 companies conspired to substantially restrict competition for survey works ordered by the Nagano Construction Office using designated competitive bidding or designated quotation comparison method that were limited to companies with main office in Nagano Prefecture contrary to the public interest by prearranging the project contractors and having them receive relevant orders. This was intended to prevent a decline in order prices and to equalize the chance of getting contracts, beginning from a period to commence no later than June 1, 1999, for said projects.

b. Construction consultation work

The 43 companies conspired to substantially restrict competition in construction consultation works ordered by the Nagano Construction Office using the designated competitive bidding or designated quotation comparison method that were limited to companies with main office in Nagano Prefecture contrary to the public interest by prearranging project contractors and having them receive relevant orders. This was intended to prevent a decline in order prices and to equalize the chance of getting contracts, beginning from a period to commence no later than June 1, 1999, for said projects.

3. Outline of elimination measures

a. Survey work

i. The 35 companies shall confirm that they have stopped the activities mentioned in item 2a above.

ii. The 35 companies shall notify the Nagano Construction Office of the measures that they shall take based on item 3a(i) above as well as their pledge to not conduct actions similar to those mentioned in item 2a above in the future.

iii. The 35 companies shall not engage in activities similar to these described in item 2a above in the future.

b. Construction consultation work

i. The 43 companies shall confirm that they have stopped the activities mentioned in item 2b above.

ii. The 43 companies shall notify the Nagano Construction Office of the measures that they shall take based on item 3b(i) above as well as their pledge to not conduct actions similar to those mentioned in item 2b above in the future.

iii. The 43 companies shall not engage in activities similar to these described in item 2b above in the future.

4. Limitation of acceptance or rejection of this Recommendation

1 December 2003

(If the recommendation is accepted, a decision consisting of the same items contained in this recommendation shall be issued; if not, hearing procedures shall commence.)

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



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