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Recommendation to Companies which Tendered for Electric Construction Ordered by the Government and Municipal Offices of Gifu Prefecture

July 13/2004
Japan Fair Trade Commission

The Fair Trade Commission has investigated participants in bids for electric construction ordered by the government and municipal offices of Gifu Prefecture based on the provisions of the Antimonopoly Act, and today issued a recommendation to 106 companies based on Section 48(2) of said Act that these 106 companies were in violation of Section 3 (Prohibition of unreasonable restraint of trade).

1. Parties concerned

(1) 103 companies which participated in bids for electric construction ordered by the government and the municipal offices of Gifu Prefecture, the extended partnership and certain administrative partnership in Gifu Prefecture (hereinafter referred to as “Gifu Prefecture, etc.”) (these companies hereinafter are referred to as “103 companies.”)

(2) 38 companies which participated in bids for electric construction ordered by Gifu University (hereinafter “38 companies”)

2. Summary of Violation

(1) Electric construction ordered by the Gifu Prefecture, etc.

Since April 1, 2000 at the latest, the 103 companies ordered by Gifu Prefecture, etc. had jointly decided winners of order to equalize opportunities and prevent price drop through general bidding, designated several types of competitive bidding by the public offering or designated several types of competitive bidding and for which the highest bid price is expected to be 200 million yen or above. As a result, the 103 companies substantially restricted competition in the trade field of the above construction against the public interest by having the winners decided by the 103 companies win the bids.

(2) Order for electrical construction ordered by Gifu University

Since April 1, 2000 at the latest, the 38 companies ordered by Gifu University had jointly decided winners of order to equalize opportunities and prevented a drop through several types of competitive bidding of the desired construction. As a result,the 38 companies substantially restricted competition in the trade field of the above construction contrary to the public interest by having the winners decided by the 38 companies actually accept the order.

3. Summary of measures to eliminate the violation

(1) Electric construction ordered by Gifu Prefecture, etc.

A. The 103 companies shall resolve at meetings of their boards of directors that said companies ceased the conducts described in 2 (1) above, and inform each other thereof.

B. The 103 companies shall inform Gifu Prefecture, etc. of the measures taken based on 3 (1) A above and of said companies shall not involved in any conducts similar to these conducts in 2 (1) above, and make this known to their employees in charge of the marketing of electric construction in the territory of Gifu Prefecture thoroughly.

C. The 103 companies shall not involved in any conducts similar to these described in 2 (1) above in the future.
(2) Electrical construction ordered by Gifu University

A. The 38 companies shall resolve at meetings of their boards of directors that said companies ceased that the conducts described in 2 (2) above, and inform each other thereof.

B. The 38 companies shall inform Gifu University of the measures taken based on 3 (2) A above, and that said companies shall not involve in any conducts similar to the conducts described in 2 (2) above, and make this known to those employees in charge of the marketing of electric construction in the territory of Gifu Prefecture thoroughly.

C. The 38 companies shall not involved in any conducts similar to these described in 2 (2) above in the future.

4. Deadline for accepting or rejecting the recommendation

July 26, 2004
(If the recommendation is acceptable, a decision that 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.



Japan Fair Trade Commission:

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Tel: +81-3-3581-1998
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