March 18/2004
Japan Fair Trade Commission
The Fair Trade Commission carried out an investigation of the Tokyu Parking Systems Corporation (hereinafter “Tokyu Parking Systems”) based on the provisions of the Antimonopoly Act. The Fair Trade Commission today issued a recommendation to that company based on Paragraph 1 of Section 48 of the Act as it violated Section 19 of the Act (coming under Paragraph 15 (Interference with a Competitor’s Transaction) of the Designation of Unfair Trade Practices).
1. Related party
Outline of the business and other matters:
Tokyu Parking Systems is engaged in the maintenance of almost all of the multilevel mechanical car-parking garages (NOTE) manufactured by Tokyu Car Corporation, and is the exclusive supplier of replacement parts used only for the maintenance of the parking garages. Tokyu Parking Systems holds the leading position in the maintenance of multilevel mechanical parking garages in Japan.
(NOTE) “Multilevel mechanical parking garages” denote equipment to park cars at a designated place by automatically lifting or sliding a multistory car-parking space.
2. Outline of the Violation
In supplying replacement parts for multilevel mechanical parking garages to independent maintenance companies engaged in the maintenance of the parking garage as assigned by the management companies and owners of the multilevel mechanical parking garages manufactured byTokyu Car Corporation, Tokyu Parking Systems unjustly interfered with the transactions for maintenance operations between the independent maintenance companies and the management companies and owners of the parking garage as shown below. (The “independent maintenance companies” denote companies engaged in the maintenance of multilevel mechanical parking garagesother than the manufacturers of the multilevel mechanical parking garages and their subsidiaries. This applies hereinafter.)
(1) Although Tokyu Parking Systems stores the replacement parts and may ship them withoutdelay, Tokyu Parking Systems significantly delays the timing of shipments using the pretext of a so-called “shipment through production” that the replacement parts will be sold after assigning new part manufacturers with the manufacture of the parts.
(2) Tokyu Parking Systems sells the parts at prices that are far higher than the selling prices tothe management companies and owners of the said parking garage who conclude a maintenance agreement with Tokyu Parking Systems or Tokyu Car Corporation without justifiable reasons,and sells the parts in units of the possible minimum volume ordered when assigning manufacturers to manufacture the parts.
3. Outline of the measures to eliminate the activity
(1) Tokyu Parking Systems should refrain from the activities shown in 2 above.
(2) Tokyu Parking Systems should notify the independent maintenance companies of the measures taken based on the preceding 3(1). Tokyu Parking Systems should refrain from activities that are similar to those shown in 2 above, and make them known to its employees without exception.
(3) Tokyu Parking Systems should refrain from activities similar to those shown in 2 above.
4. Deadline for accepting or rejecting the recommendation
March 29, 2004
(Where the recommendation is accepted, a decision that is the same as the recommendation will be made. Where the recommendation is r
*Every announcement is tentative translation. Please refer to the original text written in Japanese.
