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JFTC recommendation to participants in bidding for placing road traffic signals etc. called by the Tokyo Metropolitan Police Department

February 20/2003
Japan Fair Trade Commission

As for bidding called by the Tokyo Metropolitan Police Department (MPD) for placing road traffic signals,the participants, totaling 17 corporations received FTC recommendation in violation of Section 3 [unreasonable restraint of trade] of the Antimonopoly Act.

1. Parties concerned with the following construction works in Tokyo

(1) integrated control systems that are universally controlled by traffic control centers with vehicle sensors, etc.
* 6 construction firms

(2) Traffic signals with preinstalled multi-layered programs
* 14 construction firms

(3) Ancillary devices for the aged/persons with impaired vision
* 8 construction firms

(4) Replacing traffic signals
* 12 construction firms

2. Outline of violation

 The above corporations colluded in rigging bids invited by the MPD, being let through private competitive bidding on the premise that tacit agreement should provide equal opportunities and prevent a price drop.
 Charges that were related to a conspiracy to rig and allocate bids to predetermined winning bidder undermined the bidding system and resulted in a substantial lessening of competition in the relevant market to the detriment of the public interest.

3. Cease and desist order

 The above corporations were enjoined to cease the above act.

 The above corporations were obliged to notify the PD of their intention to avoid recurrence of similar acts as well as remedial actions. All employees should be fully admonished against misconduct.

 Furthermore, the above corporations were condemned never to conspire or commit a similar fraud in the future.

4. The due date for acceptance of recommendation: 6 March 2003 Recommendation/decision if accepted, or otherwise,proceed to initiate hearings

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

Japan Fair Trade Commission:

100-8987 1-1-1 Kasumigaseki, Chiyoda-ku, Tokyo,Japan
Tel: +81-3-3581-1998
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