May 13, 2026
Japan Fair Trade Commission
Report on the Fact-Finding Survey on the Measures Taken by Procuring Agencies to Prevent Bid Rigging Involving Procurement Officials
Today, I would like to talk about two topics.
The first is the “Report on the Fact-Finding Survey on the Measures Taken by Procuring Agencies to Prevent Bid Rigging Involving Procurement Officials,” which we published on April 27.
Bid rigging is a typical example of unreasonable restraint of trade prohibited under the Antimonopoly Act and is regarded as one of the most serious violations. So-called “bid rigging involving procurement officials,” in which officials of procuring agencies take part, harms the interests of the agencies and, ultimately, the taxpayers. Such conduct must never be tolerated.
In the bid-rigging case concerning road cleaning services ordered by Metropolitan Expressway Co., Ltd., for which the JFTC announced measures on the 22nd of last month, the JFTC also found bid rigging involving procurement officials. Cases involving the leakage of confidential information by officials and other conduct that raises issues under Article 8 of the so-called Involvement Prevention Act continue to occur.
As I mentioned at the regular press conference last September, the JFTC had been conducting a fact-finding survey, for the first time in eight years since 2018, on measures taken by national and local governments and other procuring agencies to prevent bid rigging involving procurement officials. The JFTC compiled the results of the survey and published them on April 27, 2026.
In this survey, the JFTC conducted a questionnaire survey of a total of 2,474 entities, including national government agencies such as central government ministries and agencies and their local branch offices, government-owned institutions, and local governments. The JFTC received responses from 2,220 entities and conducted interviews with 56 entities.
The survey found differences in the measures taken by procuring agencies. For example, more than 80% of agencies held training sessions on the Involvement Prevention Act after violations of Article 8 of the Act had occurred, which is a high level. On the other hand, among procuring agencies with no history of such violations, only around 20% had held training sessions on the Act. This shows that efforts vary among procuring agencies, and that initiatives to prevent such violations before they occur still have some way to go.
In response to the question asking why they had not taken measures to prevent bid rigging involving procurement officials, many agencies stated that they had continued their operations by following past practices because no particular issues had been pointed out, or cited a lack of resources, such as budget and personnel. However, once a case involving violations of the Involvement Prevention Act or related laws occurs, the workload of officials may increase due to the need for post-incident responses, such as developing measures to prevent recurrence, regardless of whether sufficient budget, personnel, or other resources are available.
In light of this, procuring agencies need to regard compliance as their own responsibility and proactively take measures to prevent violations of the Involvement Prevention Act and related laws before they occur.
Based on these circumstances, the Report identifies issues related to the prevention of bid rigging involving procurement officials and other similar conduct. It also summarizes key points for the future direction of initiatives taken by procuring agencies, focusing on four areas: (1) developing rules and other internal provisions that officials must comply with so that they will not be involved in bid rigging or similar conduct; (2) establishing organizational systems within procuring agencies to prevent officials from being involved in bid rigging; (3) raising awareness to improve compliance; and (4) taking other measures to prevent officials from being involved in bid rigging or similar conduct.
In addition, the JFTC has published support tools, such as the “Checklist for the Manual to Prevent Bid Rigging Involving Procurement Officials” and the “List of Measures to Prevent Bid Rigging Involving Procurement Officials,” so that procuring agencies can use them as references when implementing measures to prevent such conduct. We encourage all procuring agencies to make full use of these tools.
The JFTC will continue to actively support procuring agencies’ compliance initiatives, including by responding to consultations from procuring agencies on measures to prevent bid rigging involving procurement officials before it occurs, and by dispatching lecturers to training sessions on the prevention of such conduct held by procuring agencies.
For inquiries regarding this matter, please contact the General Affairs Division, Economic Affairs Bureau.
On the Passing of Former Chairman Kazuhiko Takeshima
Turning to my second topic, as has already been reported, Mr. Kazuhiko Takeshima, former Chairman of the Japan Fair Trade Commission, passed away on April 27 this year.
After serving as Commissioner of the National Tax Agency and Assistant Chief Cabinet Secretary, Mr. Takeshima served as Chairman of the JFTC from July 2002 to September 2012, during which time he made an exceptionally significant contribution to the advancement of competition policy in Japan.
In reflecting on Mr. Takeshima’s achievements, I believe that the first and foremost point to be mentioned is his leadership in the 2005 amendment to the Antimonopoly Act. This amendment raised the surcharge calculation rates, and introduced the leniency program and criminal investigation powers, which are now indispensable enforcement tools for the JFTC. These changes significantly strengthened the deterrent effect of the Antimonopoly Act and the JFTC’s enforcement capabilities.
Mr. Takeshima also made a significant contribution to enhancing the international presence of the JFTC. For example, at the International Competition Network (ICN), he served as Vice Chair and led discussions at international conferences and other forums as a leading representative of Japan’s competition authority.
Another major achievement, I believe, was that he promoted the JFTC’s activities under the slogan “No competition, no growth” and helped spread the belief that fair and free competition is essential to the revitalization of Japan’s economy and to innovation.
Once again, I would like to express my deep respect for Mr. Takeshima’s achievements and offer my sincere condolences on his passing. May he rest in peace.
(Tentative translation)